Too Many Signals to Ignore

BTIG analyst Jonathan Krinsky warns that extreme RSI levels, poor breadth, and record tech concentration signal a likely market correction. The semiconductor sector's recent 3.8% drop suggests leading sectors are finally beginning to 'catch down' to the broader market weakness.

Key Takeaways

• 1.The SPY has reached extreme RSI levels (78) which historically precedes negative returns across all timeframes from 5-40 days.
• 2.Market breadth is at an unprecedented divergence; while the SPX is 8.5% above its 50 DMA, only 47% of component names are above their own 50 DMA.
• 3.The Semiconductor and AI theme (SMH) has begun to crack, suffering its worst daily decline since March (-3.8%) on high volume.

Table of Contents

• Biggest Downside Volume Since March
• Another Unprecedented Extreme
• Yields Knocking on a New Range
• Crude Floor Being Raised
• One of These is Not Like the Others
• Tech Weighting Continues to Surge
• Fear Has Left the Building

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial