GettyThe action in the stock market last week was not pretty even though stocks tried to stabilize on Friday instead of adding to Thursday’s losses. The stock market was looking stretched in the middle of April so the recent weakness is not a surprise. Since 2000, the S&P 500 has been down six years with the worst May coming in 2010 when it dropped 8.34%. The weekly S&P 500 Advance/Decline line peaked the week of May 3rd and has declined for the rest of the month. Even though the technical outlook does favor a further stock market decline as I discussed last week “The Week Ahead: Double Top Or Not?” there is no evidence to suggest that the stock market has completed a major top.

Source: Forbes May 27, 2019 17:48 UTC