The S&P 500 has begun to show signs of momentum loss ahead of the Jackson Hole meeting. The number of member stocks trading above their 200-day moving average has not increased, even as the index made new highs. RSI is showing a negative divergence, and the index has slipped below its short-term yellow trendline.
In addition, crypto markets sold off early Monday, and the VIX opened the week with a gap higher, moving above its short-term downtrend. These are still only early signals and not yet concrete confirmation, but traders should be cautious of potential profit-taking ahead of Jackson Hole, where Powell may push back against expectations for rapid rate cuts.
