We find the S&P 500 and Russell 2000 stuck in a trading range that will eventually get resolved one way or the other. The bottom-up ranking of the S&P 1500 scores 67% of the constituents with a weak score based on absolute and relative weekly trends.
Many of the indices reviewed are about in the same zone as they have been since early January. The bear market rally appears to be losing upside momentum, and we are looking for a close below the 40-week moving average as a signal that the next leg lower has started.
We are highlighting the S&P and NDX as two important indices that have reversed from MOB target and resistance zones and have a weakening of momentum.
We find the following indices stalled and some turning down from resistance and MOB target bands; S&P 500, NDX, Nasdaq Composite, and Russell 2000.
There are some near-term positives where the S&P 500, NDX, and Nasdaq Composite have closed above the upper end of their channel resistance lines. What we don’t have is the 40-week averages turning back up to signal a positive shift in momentum.
A quick snapshot of a basket of indices that look to us at important resistance zones.
Most of the major averages we review remain in their well-defined down trending channels, with the exception of the Russell 2000, which just broke above its channel resistance.
Not much new as we reviewed the equity indices we report, so we are just updated a basket of charts
The playbook remains the same as the major market indices in a well-defined downtrend.
The chart of the Nasdaq Composite is similar to what we are seeing in the SPX, MDY, NDX, except for the Russell 2000, which is in a weaker position.
The pictures we present in the following pages will speak more than words. Even a one-eyed technician with a crooked ruler can determine that trend structure remains very weak across the major U.S. indices we review here.
The S&P 500, NDX, and Russell 2000 have rallied sharply in the last few days and have all have come into an area of resistance and have ellipse sell signals
The major U.S. indices remain in a very weak technical structure, and we would use any near-term strength to sell into.
We are highlighting WTI Crude Oil and the XOP to start. The one-day pullback in WTI held the uptrend off the December low and a place to add to a long position.