Technical traders are closely watching the 50-day moving average to determine market momentum. When the price trades above the average, the market is healthy, but a drop below could signal weakness. Market internals are weakening, with some sectors having fewer than 25% of stocks above the 50-DMA, indicating downside risk. The SPY closed above its 50-DMA for 131 consecutive days but recently dipped below, signaling a potential shift in the market. Monitoring metrics like the New High-Low Accumulation Index and Market Cap High-Low Index can provide insights into market strength and potential corrections.

Read more at Barchart: SPY’s 50-Day Moving Average Streak is Going Strong. The Rest of the Market is Sending Up Flares.