A couple weeks ago I highlighted that stocks could run into some trouble. The Erlanger EC Spread was starting to give us signs of problems as it had crossed below its signal line. Now the EC Spread is closing in on 0. A break would be a problem for the market and a hold we tell us that maybe this is as bad as it will get.
Also, we have highlighted the Heikin Ashi Candlesticks. Green is good. Red is bad. Currently, we have several days of red. This needs to be watched closely as it is occurring when the EC Spread is weakening.