NEW YORK, Sept 9 (Reuters) - U.S. stocks fell on Tuesday, with the S&P 500 dropping under a key technical level for the third time in as many sessions, as investors took profits in the wake of a rally that has sent the benchmark S&P index to repeated records.
The S&P is below its 14-day moving average, a sign of weakening near-term momentum. While the S&P also fell under it in both Friday's and Monday's session, it was able to rebound and close above it. If the index on Tuesday ends under the level - currently 1,997.88 - that could signal further losses ahead.
The day's losses were broad, with nine of the 10 primary S&P 500 sectors lower on the day. The only group to rise was energy , which rose 0.3 percent, rebounding from a sharp decline on Monday.
Telecom was the weakest group of the day, down about 1 percent, pressured as Verizon Communications lost 1.2 percent to trade at $48.94.
Amazon.com Inc also pressured the broader market, falling 2.1 percent to $335.11.
Nonetheless, Wall Street's recent uptrend is still viewed as intact, however, as accommodative monetary policy from central banks creates an environment that is viewed as positive for equities.
"Right now we're in the same playbook we've been all year, where we hit a new high, consolidate for a week or so, and then march higher to another record," said Chris Bouffard, chief investment officer at the Mutual Fund Store in Kansas City, Missouri, which has $9 billion in assets under management.
"The only real strength in the global economy is coming from U.S. stocks, so we remain constructive."
The Dow Jones industrial average was falling 61.97 points, or 0.36 percent, to 17,049.45, the S&P 500 was losing 5.85 points, or 0.29 percent, to 1,995.69 and the Nasdaq Composite was dropping 14.84 points, or 0.32 percent, to 4,577.44.
The largest percentage gainer on the New York Stock Exchange was Annie's Inc, rising 37.87 percent, while the largest percentage decliner was MaxLinear Inc, down 15.62 percent.
Among the most active stocks on the NYSE were Bank of America, down 1.01 percent to $16.19; U.S. shares of Petroleo Brasil, up 0.71 percent to $18.48, and Ford Motor Co, down 0.54 percent to $16.71.
On the Nasdaq, Yahoo Inc, down 1.7 percent to $41.10; Apple Inc, up 1.1 percent to $99.46 and SinoCoking Coal and Coke Chemical Industries Inc, up 192.8 percent to $8.55, were among the most actively traded.
Declining issues outnumbered advancing ones on the NYSE by 2,034 to 817, for a 2.49-to-1 ratio on the downside; on the Nasdaq, 1,816 issues were falling and 748 advancing for a 2.43-to-1 ratio favoring decliners.
The broad S&P 500 index was posting 10 new 52-week highs and 1 new low; the Nasdaq Composite was recording 39 new highs and 36 new lows. (Editing by Nick Zieminski)