Carter Worth Thinks The S&P 500 Is Heading Lower

Carter Worth shared with the viewers of CNBC's Fast Money his technical analysis for the S&P 500.

He showed on a daily chart a well defined uptrend line for the year-to-date period and he noticed that the S&P 500 broke below the trend line. This doesn't mean that the index is going to crash, but the problem is that everyone is playing for a break out on the upside and the S&P 500 is breaking on the downside.

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Worth also presented the three-year chart and he analyzed the breakout point from November 2015. This price level is now support and the S&P 500 has returned to it for the second time. Worth is concerned about this pattern and he thinks that the break out on the upside was fake.

He also analyzed the performance of the S&P 500 versus gold, bonds and the real estate and he concluded that the S&P 500 under performed the group in the last 18 months. Worth also noticed that the relation between price per share and earnings per share shows that the stock market is overbought. All the signs make Worth believe that it's time to sell the S&P 500.