Todd Sohn, CMT, a technical analyst and Director at Strategas Research Partners in New York, was featured in USAToday late last week urging caution in regards to the S&P 500’s recent weak behavior. 

The “trend is turning to the downside,” and risk appetite for stocks is decreasing, Sohn told reporter Adam Shell. 

Specifically, Sohn noted that transportation stocks late last week were down more than 10% below their September high, as illustrated by the Investopedia chart above.

“When shares of railroads, package delivery companies and container ships fall, it may be an early sign of economic weakness,” Sohn explained to Shell. “[The] character of the market is changing.” 

Ari Wald, who recently appeared in The Technical Analyst with an opposing view, disagrees with Sohn in the report. The market is already trading at the “lower end” of a trading range Wald anticipates moving forward, he told Shell. 

Read the full report here: Stock market warning flags: potential trouble spots to watch