Bullish or Bearish? Week of Nov. 6, 2017

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

S&P 500 is above its 50-day MA = Bullish

MACD (S&P 500; 19,39,9) is above its zero line = Bullish

MACD (S&P 500; 19,39,9) is equal to its signal line = Neutral

S&P 500 support @ 2560


Sentiment Indicators (+RSI)

II survey: (Oct. 31): 63.5% Bulls; 14.4% Bears = Bearish

AAII survey: (Nov. 1): 45.1 Bulls; 28.6% Bears = Neutral

VIX: @ 9.14 = Bearish

RSI: (S&P 500) @ 70.40 = Overbought 

Comment: There is not much change from last week except that more retail investors are catching the bull fever. Technical readings are bullish while sentiment is so bullish it’s a red flag.  While some pros are predicting a major correction, others keep blindly buying at all time highs. Eventually, the market will stop climbing but for now, the bulls are in control. Lately, investors are hopeful there will be another Christmas rally. We shall see. 


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