The S&P 500 Equal Weight Index (SPXEWI) has maintained negative weekly momentum for 10 weeks for the first time in two years.

Monday’s action brought most U.S. Equity indices into negative territory with the S&P 500 Equal Weight Index leading the way to the downside, down 1.3%. This marks a third negative trading day for both the S&P 500 (SPX) and S&P 500 Equal Weight Index (SPXEWI). On the point and figure trend chart, SPXEWI reversed into Os and broke a quadruple bottom at $7500 during Monday’s trading, bringing the chart back to a sell signal for the first time since August. With this being an initial sell signal within the confides after rallying to new all-time highs, the long-term trend for the index remains intact. From here, initial support now resides at $7300, while additional can be found at $7050 and $6950, the bullish support line.

Monday’s action kicked the week off on a negative note for the S&P 500 Equal Weight Index (SPXEWI), which follows Friday’s action capping off a third consecutive week of negative action. After making an all-time high at the beginning of October, the index consolidated, bouncing around above and below the middle of the 10-week trading band. With the consolidation, weekly momentum has been negative for 10 consecutive weeks. This marks the first time since late 2023 that weekly momentum has steadily worked its way negative for this long.

Going back to 1990, there have been 22 periods in which weekly momentum has been negative and extended past 10 weeks or longer. While forward returns are positive across the observed periods on average, there were bumps in the road at times. Solace can be found in the fact that only two times where returns in the intermediate to long-term were negative by more than double digits, so massive downside has not been the hallmark following these instances. Additionally, we have to go back more than a decade to see a negative return in the intermediate to long-term.