Stocks are skating on thin ice.
The Dow and S&P 500 are down a respective 3 percent and 2 percent year to date, with the Dow tracking for its first annual loss since 2008. With just 7½ trading sessions left in the year, one technician warns this is a "crucial" time for the bulls.
"If you look at the S&P 500, it's basically gone nowhere for the last 14 to 12 months," Jonathan Krinsky told CNBC's "Power Lunch" on Monday. The market has traded in a historically tight range for much of the last year. "There simply aren't enough stocks participating to keep the indices at these levels, and the longer it stays this way, the more concerning it becomes."
According to Krinsky, the S&P has gone an eye-opening 5½ months, with less than 60 percent of its components trading above its key 200-day moving average, the longest streak since 2012. Furthermore, Krinsky said that "since 1990, only four such streaks have exceeded the six-month mark, three of which occurred during the 2000-03 bear market, and the fourth during the 2008-09 bear market."