"That's a normal correction, when bull markets get overheated like this," said Dan Wantrobski, technical strategist at Janney Montgomery Scott.
When a stock, for example, falls below its 200-day moving average, it is seen as a potential sign of more downside pressure.
Earlier this month, the index fell below the commonly watched 50-day moving average.
Fairlead Strategies' Katie Stockton is closely watching a popular trend-following gauge known as the moving average convergence/divergence indicator, or MACD — which recently flipped to a sell signal after reverting to a buy in November.
Pressure from yields Technical indicators may help analysts detect where the market is headed, but macroeconomic factors remain the major action drivers influencing sentiment.
Persons:
Dan Wantrobski, Janney Montgomery Scott, Wantrobski, Roth MKM's JC O'Hara, Katie Stockton, Stockton, O'Hara
Organizations:
Nasdaq, Wall