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.
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.
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.