Visa Inc. (V) could help lead the S&P 500 lower. With a weighting of 1.2% in the index, Visa ranks as the ninth most important stock in the benchmark.
Visa earnings expected after the close on Wednesday, so this is a good time to review the charts again. We last checked them on Oct. 15 and wrote that, "Some market watchers consider Visa and Mastercard (MA) key stocks to watch to get a read on the economy and the state of the consumer. Right now the charts of V have weakened. A close below $190 could precipitate a deeper decline. The offense has left the field."
With V closer to $190 now, let's review the charts again.
In the updated daily bar chart of V, below, we can see that the slope of the 50-day moving average line has turned lower and the rising 200-day moving average line is not far away. A test and even a break of this indicator is possible in the near term.
Trading volume has been declining in recent weeks and the On-Balance-Volume (OBV) line has been neutral. The Moving Average Convergence Divergence (MACD) oscillator has crossed below the zero line for an outright sell signal.
In the weekly bar chart of V, below, we can see a weakening picture. The shares are just barely above the 40-week moving average line, which has begun to turn lower. The weekly OBV line which has been flat all year has begun to turn lower.
The MACD oscillator has crossed to the downside for a take profits sell signal.