Market euphoria? Insider sales at a peak and technical analysis

The S&P 500 and Nasdaq indices are trading at all-time highs, but insider sales are increasing and technical signs point to a potential correction.

By the SpyStocks desk · 4y ago · 2 min read

Part B - Continuation and technical analysis:

Note an important and interesting data point: According to a MarketWatch report, stock sales by insiders in the US are at a peak.

Let's move on to the technical analysis: The leading indices are stretched and trading at all-time highs again, with the S&P 500 index closing at an all-time high on 8/11 for the eighth consecutive day – an unusual sight indicating market euphoria.

Both the S&P 500 and Nasdaq indices were halted at the top of an ascending channel that has lasted for a year and are currently testing the levels where they were halted – if they are halted again, a bearish "double top" pattern will form.

In the last six months, the S&P 500 index consistently touched the 100-day moving average around the 18th-20th of each month.

It appears the index has stretched significantly far from the average, and as a result, a market correction could occur.

In summary: We are in a sensitive and tense period in the markets. It is important to place stop-losses, pay attention to proper risk management, and act wisely.

The above does not constitute any recommendation or advice – it is personal opinion only. Anyone using this information does so at their own discretion and responsibility.

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