The mild sell-off in Asia reflected Wall Street’s pessimism Monday after a disappointing report on U.S. manufacturing. The Dow Jones industrial average finished down 10.75 points, its seventh consecutive decline. The Dow began the day up more than 140 points before falling by as many as 145.
Here. That’s not all. The stock markets have other headwinds blowing against further rises. One, the major indexes have formed a head-and-shoulders technical pattern that started in February of this year. This pattern is used to forecast turning points in the direction of financial markets. Note the emphasis on forecast, aka, a prediction of future earnings. Also working against the stock market is the season of the year. Spring and summer are typically not bullish months. The saying “sell in May and go away” was coined to describe this phenomena.