Caution from John Roque: Market Internals Breaking Down

Wall Street veteran warns of weakening market foundation as oil prices soar and Middle East tensions escalate

Mar. 27, 2026 at 12:21am

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In an urgent interview, Financial Sense's Jim Puplava grills Wall Street veteran John Roque on where stocks, bonds, and even 'safe' assets like gold and staples are possibly heading. Roque reveals the overlooked signals guiding his next moves, from interest rate shockwaves to geopolitical curveballs, and why even the old market playbooks may not work this time.

Why it matters

Roque's analysis highlights growing concerns about the deteriorating health of the broader market, with key internal measures like cumulative breadth and net new highs signaling a weakening foundation. This comes as oil prices surge, Middle East tensions escalate, and the Federal Reserve faces a challenging path forward on interest rates.

The details

According to Roque, key measures like cumulative breadth and net new highs on the NYSE and Nasdaq are deteriorating, signaling a weakening market foundation. Yields across the G7 are also surging, with the 2-year Treasury target at 5%, making higher rates a likely headwind for stocks. Roque notes that in this cycle, oil prices—not gold or silver—are setting the tone, as the energy sector outperforms. The so-called 'Mag 7' tech giants are also breaking down, underperforming both in absolute terms and against the S&P 500. Roque stresses that the financial sector, led by JP Morgan, must stabilize for any broad market recovery, as 'you can't have a bull market if banks go down'.

  • Roque's downside targets for the S&P and Nasdaq are 6,000 and 20,000, respectively.
  • With short-term yields above the Fed funds rate, rate hikes are unlikely but rate cuts are off the table for now.

The players

John Roque

A Wall Street veteran who heads technical analysis at 22V Research.

Jim Puplava

The host of the Financial Sense podcast and the founder of Financial Sense Wealth Management.

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What they’re saying

“You can't have a bull market if banks go down.”

— John Roque

The takeaway

Roque's analysis paints a cautious picture of the current market environment, with weakening internals, rising interest rates, and geopolitical tensions posing significant challenges. His focus on monitoring the performance of the financial sector and the 'Mag 7' tech giants will be crucial in determining the path forward for the broader market.