The sell signals keep stacking up for the S&P 500

Core Viewpoint - The recent stock market sell-off has raised multiple warning signals indicating potential further declines for investors [1][8]. Technical Indicators - The S&P 500 has dropped below its 50-day moving average for the first time in 138 trading sessions, marking the end of its longest streak above this threshold since 2007 [2][4]. - Analysts suggest that the index may retest the April low, which would represent a 27% decline from its current level of 6,579 [3][4]. Investor Sentiment - Global fund managers are currently holding very low levels of cash, averaging 3.7%, which is considered a sell signal [5][6]. - Historical data indicates that cash levels of 3.7% or lower have preceded declines in stocks and outperformance of Treasuries in the following 1-3 months [6]. Market Concerns - There is increasing concern about a potential stock market correction, particularly in the tech sector, driven by valuation worries and the health of AI-related stocks [7]. - Nvidia has seen a decline of approximately 7% over five days as it approaches its earnings report, contributing to the overall market anxiety [7].