Coming off its worst week in more than two years, the stock market may be headed for more trouble, according to technical analysts . This is despite the Monday, March 26 rally, the biggest one-day uptick in all three major U.S. stock market indices since August 2015, MarketWatch adds. "The extent of the deterioration in equities is very much a concern given the combination of near-term technical damage, along with the decline in longer-term momentum after having reached record 澳洲幸运5官方开奖结果体彩网:overbought condi🍌tions into late January," techn🐻ical analyst Mark Newton of Newton Advisors wrote on Monday, as quoted by MarketWatch.

During the week ending March 23, the 澳洲幸运5官方开奖结果体彩网:S&P 500 Index (SPX) fell by 6.0%, the 澳洲幸运5官方开奖结果体彩网:Dow Joneဣs Industrial Average (DJIA) by 5.7%, and the 澳洲幸运5官方开奖结果体彩网:Nasdaq 100 Index (NDX) by 7.3% from the previous Friday's close. The rally on Monday, March 26 was followed by a pullback on Tuesday afternoon. As a result, the net recoveries in these indices between the closes on March 23 and March 27 were respectively: 0.9%, 1.4% and 0.3%. Earlier this year, the market endured a 澳洲幸运5官方开奖结果体彩网:correction between the closes on January🐻 26 and February 8, with the 🀅S&P 500 dropping by 10.2%.

Key Technical Indicators

With the S&P 500, technical analysts pay close attention to the current value of the index versus its 200-day 澳洲幸运5官方开奖结果体彩网:moving average, MarketWatch says. When the 💧former dips below the latter, a downtrend is assumed to be underway. At the Friday M✃arch 23 close, the former was fractionally above the latter, a barely bullish indicator. At the close on Tuesday, March 27, the index was a modest 1% above its 200-day moving average, .

For the Nasdaq 100, its 100-day moving average is a common benchmark for technicians, per MarketWatch. On Friday the index dropped below this level, sending a bearish signal. By Tuesday's close it was 1.3% below the 100-day moving average, per the same source.

Adherents of the 澳洲幸运5官方开奖结果体彩网:Dow Theory are looking closely at the 澳洲♏幸运5൩官方开奖结果体彩网:Dow Jones Transportation Average (DJT). According to , if the Dow Transports close below 10,136.61, its recent low close on February 9, that would be a major 澳洲幸运5官方开奖结果体彩网:bear market signal for the Dow Industrials. On Friday, the Dow Tra♑nsports closed just 27 points above this "trigger level." At the close on Tuesday March 27, the gap was 55 p🐽oints above.

'Notable Technical Damage'

Among the Dow Industrials and the S&P 500, around half the constituents of each index were trading below their own 200-day moving averages as of March 16, per MarketWatch. This analysis was performed by Michael O'Rourke, chief 澳洲幸运5官方开奖结果体彩网:market strategist at Jones Trading, based on data from Bloomberg. As quoted by MarketWatch, O'Rourke writes with respect to thi🤪s finding that "notable technical damage has been done to this market."

Already a Bear Market?

A bear market already is underw🐷ay, , with the bull market having breathed its last on January 26. If so, and if this bear market is of average duration and depth, Hulbert expects it to last another 11 months, by which time the Dow would have shed 5,205 points, or 22.1%, from its January 26 high. Even so, he notes, this would place the Dow right back where it was on Election Day 2016.

Many investors worry that a record-setting bull market is likely to be followed by an especially severe bear market. Hulbert offers some comfort: "There is no statistically significant correlation between a bull market's length or gain and the subsequent bear market's length or loss." He also writes,  "I found that it takes an average of 3.2 years from the beginning of a bear market for the stock market to battle back to where it stood at the beginning."

But Fundamentals Point Upward

To be sure, the bulls will point to strong 澳洲幸运5官方开奖结果体彩网:fundamentals such as rising corporate earnings and continued economic expansion in both the U.S. and worldwide as reasons for continued optimism, and additional stock price gains. Indeed, Barron's columnist Ben Levisohn has noted that, with respect to the start of bear markets, "The culprit in nearly every case is recession." (For more, see also: ꧋澳洲幸运5官方开奖结果体彩网:An Economic 'Shock' Could Derail the Bull Market.)