The bullish case for U.S. stocks is getting weaker

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The bullish case for U.S. stocks is getting weaker
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New Highs vs. New Lows indicator has generated a sell signal.

The stock market, as measured by the S&P 500 Index SPX, is still trapped within its trading range. However, when SPX traded down through its 20-day Moving Average this week, coupled with the FOMC meeting’s conclusion, that seemed to get the ball rolling on the downside.

This is also a seasonally weak period for the market, so that is potentially contributing to the bearish argument as well. The support at 4330 is what really matters, though, and as long as that holds, SPX is still in its trading range that extends back several...

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