For investors concerned about the S&P 500 Index “outside reversal” this week from its 50-day moving average near 1,130, the picture does not get any brighter when you step back and look at the weekly chart. The index is not only about to mark its sixth consecutive close at or below the 40-week moving average (essentially identical to the 200-day m.a.), but a key pair of trend markers, the 10- and 20-week moving averages, just crossed negative last week.

Below is a chart that highlights the stalling market and its failed attempts to regain lift and upside momentum.

This chart seems to suggest that the path of least resistance is downward. A test of the correction lows around 1,040 is the easiest first destination, and then all eyes will be on the big round number of S&P 1,000—not least because it is the home of another key long-term trend marker, the 80-week moving average.

If market bulls were looking for a catalyst from a resolution of financial reform in Washington, or something positive from the FOMC yesterday, or emboldening jobs data this morning, they didn’t get it. If anything, the Fed statement yesterday was sort of a wet blanket, as what stood out was their slightly more negative tone on the pace and breadth of the economic recovery.

It seems the market is getting weaker as many portfolio managers continue to sit on the sidelines, some even contemplating taking profits and moving a bigger allocation to cash. A significant move like this among money managers could easily send the index down to 1,000. Though that will be a line in the sand for many bulls, a trip to more significant support at 950 could still be hit and not damage the long-term prospects for this market.

To read more from Kevin, please visit his page on ONN.TV