Here are the latest indicators:
S&P 500 one-month trend = Neutral to Bearish
S&P 500 is near its 50-day moving average = Neutral
RSI: (S&P 500) @51.08 = Neutral
Intraday Volatility: Neutral (but with potential to increase)
Daily results of multiple indicators (from Yardeni Research): https://goo.gl/eT3fzA
Comment: After a five-day rally, the market is due to take a breather, or worse. We went too far and too fast on questionable buying. “Questionable” because it appears as if the algos and other entities ran the market higher, as often happens. We went far and fast but could only surpass the S&P’s 50-day moving average by no more than a few points. This week, if the market soundly rises above its 50-day moving average, the bull market continues. If, on the other hand, it fails, then the market will be in for a rough week.
Because severe technical damage was done to the market in early February, I would not be surprised to see a pullback this week. A one-week party cannot erase the damage done, so be prepared for volatility to increase moving forward. Many investors believe the worst is over so any pullback will be a surprise. As always, keep your eye on the 10-year yield (the closer it gets to 3%, the more volatility will increase), and also on the 50-day moving average. As always, the market is always right and the 50-day moving average is the line in the sand.