The Stock Market Is Headed to a Correction, Charts Show

The index is currently clinging to its 21-day exponential moving average, with the 50-day simple moving average not far below. This correction, typically defined as a 10% drop from all-time highs, would push the index back toward its 200-day simple moving average. The equal-weight chart also shows a bearish rounded-top pattern, and the 21-day exponential moving average has crossed below the 50-day simple moving average, forming a bearish death cross.

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