Here are the latest indicators:
S&P 500 one-month trend = Neutral
S&P 500 is a few points above its 50-day moving average = Neutral
RSI: (S&P 500) @53.70 = Neutral
Intraday Volatility: Neutral (but with potential to increase this week)
Daily results of multiple indicators (from Yardeni Research): https://goo.gl/eT3fzA
Comment: As I wrote last week, the line in the sand was 2700 on the S&P 500. After a rough start, the S&P dropped well below 2700 early last week, even touching its 200-day moving average for a few hours. By the end of the week, however, the bulls (with help from the algos) saved the market and ran it back to its 50-day moving average. In fact, the market ended nearly where it began last week.
So here we are again. Bullish investors are feeling even more invincible while the bears wonder if they will ever win the long game. This week should be volatile because of the Humphrey-Hawkins hearings. Chairman Powell will testify on Tuesday, February 27 at 10:00 a.m. ET, and again on Thursday, March 1 at 10:00 a.m. Based on what Powell says, it is highly likely the market will be volatile depending on whether Wall Street likes or doesn’t like Powell’s answers.
Bottom line: The bulls once again pulled a rabbit out of the hat and saved the week. Let’s stay tuned to what Powell says, and more important, how the market reacts. Be cautious trading during the hearings as volatility is likely to explode at times. The market could go in either direction (and most likely, in both directions).