This week, the market appeared to shift dramatically from “stalling out at all-time highs” to more of a “big time risk-off selloff move” kind of situation. The warning signs were building in August, but, so far, September is ringing all kinds of market topping alarm bells. Let’s review three key charts that tell the story of this shift in investor sentiment. Weaker Momentum Indicates Bulls are Exhausted When the S&P 500 first tested the 5650 level in July, the daily RSI pushed above 80 to reinforce the strong positive momentum. Then, when that level was retested in late August, the RSI was down around 60. What appeared to be a potential pause before an upside breakout now seems to be a confirmed double top pattern with weakening momentum characteristics. This suggests an exhaustion of bullish sentiment and looks awfully similar to previous market tops. Looking for help navigating what will most likely be…
