S&P 500’s failed breakouts signal a darkening technical cloud

MarketWatch

by Lawrence G. McMillan

February 13, 2026

AI-Generated Deep Dive Summary

The S&P 500’s recent failed breakouts have cast a shadow over the markets, with technical analysts warning of a darkening “cloud” that could signal further declines. This bearish technical pattern suggests growing investor skepticism and a potential shift in market sentiment. The article highlights how this development aligns with broader concerns about economic growth and corporate profitability, which are weighing heavily on market participants. In the midst of this uncertainty, the upcoming U.S. corporate earnings season is expected to be particularly volatile. Options traders are closely monitoring several key stocks that are likely to see significant price swings following their earnings reports. These include Akamai Technologies (AKAM), DoorDash (DASH), and Alibaba Group (BABA). Each of these companies operates in highly competitive sectors, making their financial results especially critical for assessing broader market trends. The article emphasizes the importance of short-term trading strategies like buying straddles, which allow traders to profit from expected volatility around earnings announcements. By targeting options expiring shortly after the earnings reports, traders can capitalize on potential price movements while minimizing exposure to long-term market shifts. This approach is particularly appealing in a volatile environment where quick trades can yield substantial returns. For investors and traders alike, staying attuned to these technical signals and earnings-driven opportunities is crucial. The interplay between broader market trends and individual stock performances underscores the importance of adaptability in today’s fast-paced financial landscape. As the markets navigate this uncertain period, keeping a close eye on both macroeconomic factors and micro-level developments will be key to navigating successfully.

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Originally published on MarketWatch on 2/13/2026