Bullish or Bearish? Week of Dec. 26, 2016

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

S&P 500 is above its 50-, 100-, and 200-day MA = Bullish

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

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

S&P 500 support @ 2240, 2225, and 2200

 

Sentiment Indicators (+RSI)

II survey: (Dec. 20): 59.8% Bulls; 19.6% Bears = Bearish

AAII survey: (Dec. 21): 44.6% Bulls; 29.2% Bears = Neutral

VIX: @ 11.44 = Bearish

RSI: (S&P 500) @ 65.97 = Overbought

Comment: Many say that Dow 20,000 is just a number, but they are wrong: It’s an important psychological pivot point. If the Dow is able to rise above it, and stay there, that is bullish. If it fails, that is bearish. All we want for the New Year is an established trend, and we don’t care if it’s an uptrend or downtrend as long as it lasts for longer than a few days. 

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