It's the investment equivalent of Pavlov's dog. The S&P 500 falls back to its 200-day moving average, and investors jump over themselves to buy stocks.
In fact, since 2011, each time the S&P 500 touched the 200-moving average, a strong rally soon ensued. But now, some traders are worried things might be different.
According to Seaburg, the market just doesn't have the momentum it needs to get out of its current rut. "Sixty-five percent of the New York Stock Exchange stocks are trading below the 200-day moving average," he added. "The leadership in this market has been very small right now."
Seaburg pointed to blowout earnings from Amazon and Google, which sent both stocks soaring, as positives, but he also suggested that those types of stories are too infrequent to see a massive move up in the overall market. As of Monday, 191 S&P 500 firms reported earnings, with 74 percent of that coming in above estimates, per Thomson Reuters.
For Seaburg, the next major mover in the market will be the Fed rate hike, but until then, he believes the market will remain in its current state of malaise. "I don't see any movement to the upside or the downside."
But from a technical standpoint, things might be looking a little better.