The S&P 500 Index (SPX) finally broke out of its recent range and moved above 2300. That move didn’t bring a strong response from my core market health indicators. Instead, they bounced around this week. They’re all still positive, but some of them are showing weakness that could turn them negative without a continued rally.

(Click on image to enlarge)

An example of an indicator that is barely holding on is the ratio between the SPX equal weight index (SPXEW) and SPX. When this indicator is below its 20 week moving average it tells us that money is moving into mega cap stocks (which is often a flight to safety). Healthy markets have broad based buying of the stocks in the S&P 500 Index. Right now, we’re seeing a slight increase, but not the strong move higher generally associated with big rallies.

(Click on image to enlarge)

Conclusion

All the indicators are still positive, but could quickly move lower if the market doesn’t continue to rally. This is a time to keep a close eye on the market.