About 10% of the stocks in SPX did not recover their 200 dma after being pushed below in October.

The market rallied after SPXEW’s initial failure, but during that rally SPXEW only made it back to the underside of its 20 week moving average then turned back over again taking the market with it.

Although almost every indicator I follow is still positive I’m starting to see some chinks in the armor that suggest that a longer term top is in the making.

As I mentioned last Friday the S&P 500 Index should see some sideways action near the 2000 level. We’re now three days into sideways motion on relatively low volume.

Over the weekend I mentioned that our core indicators were positive but other indicators were falling. As the week progresses and the market climbs I’m seeing more of the same.

I’ve showed this chart either here or on Twitter and StockTwits over the past few weeks because it continues to weaken. It is the ratio between the S&P 500 Equal Weight Index (SPXEW) and the S&P 500 Index (SPX).