Oppenheimer’s newest technical analysis report is in, and it’s not quite as bullish as past reports. According to analyst Ari Wald, while Oppenheimer does not yet see evidence of a major top in the market, there are several reasons why traders should approach stocks with caution for the time being, including expanding downside breadth and weak seasonal trends in mid-July.

Sell E&Ps

Despite the major price weakness in the Energy sector in the past year, Oppenheimer believes the charts show more downside remaining for exploration and production (E&P) stocks.

Oppenheimer sees downward inflection in FMC Technologies, Inc. FTI 0.69%’s chart after a support line going all the way back to 2011 was broken early this year.

Southwestern Energy Company SWN 2.96% also broke below long-term support earlier this year.

Buy Refiners

The charts indicate…

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