Here are the latest indicators:
S&P 500 one-month trend = Bullish
S&P 500 is firmly above its 50-day moving average = Bullish
RSI: (S&P 500) @59.20 = Neutral
Intraday Volatility: Low
Daily results of multiple indicators (from Yardeni Research): https://goo.gl/eT3fzA
Comment: Last week, the market shrugged off a temporary downtrend and rocketed higher, ending in a huge Friday rally. Volatility was suppressed and the bulls took back control of the market. As we enter this week, no one can predict what is going to happen next. It “appears” as if this rally has some legs, but we’ll know by Monday afternoon. If the market does have room to run, if trading, don’t fight the uptrend and join the bulls.
As traders, however, we must be prepared to sell when rallies run out of steam, as they always do. Although the bulls are in control for now, the bears must patiently wait for another opportunity to pounce, probably when everyone thinks the worst is over.
Bottom line: Join the bull party if it continues this week but be prepared to sell quickly when the market slows down or reverses.