Investors prepare for potential market correction as S&P 500 shows sell signals

The S&P 500 has dropped about 4% from its record high in early December. Technical analyst Katie Stockton warns that a further decline of nearly 10% may occur in the coming weeks, based on new sell signals. Stockton's firm, Fairlead Strategies, indicates that indicators like the MACD and DeMARK suggest a correction is likely. The end of the holiday trading period may also contribute to this expected downturn. Investors are advised to use any stock rallies to hedge their positions and focus on stocks above key support levels. Monitoring the S&P 500's 200-day moving average is recommended as a potential support point.