The stocks below are showing signs of, or already in the process of, breaking down as the smart money appears to be leaving them in a subtle manner. There are stocks trading at its peak and finally showing some vulnerability, while on the other extreme, there are stocks that have been in a channel near or at their lows, before finally breaking down below those lows.
The market is extremely overbought, and prime for a pullback. To what degree that pullback shows itself as, is anyone’s guess. But the list below will provide you with a number of companies that are already forecasting that pullback through recent weakness and breaks of trend-lines and support.
Of note, pay close attention to the bear flags in Korn Ferry International (KFY), Allegheny Technology (ATI), and Prg Schultz International (PRGX) – Bear flags trade setups work great in an over heated market, and once the market confirms the weakness, these stocks tend to be the leaders to the downside.
Here are the 13 stocks starting to break down.
