Here are the latest indicators:
S&P 500 one-month trend = Neutral
S&P 500 is slightly above its 50-day moving average = Neutral
RSI: (S&P 500) @52.89 = Neutral
Intraday Volatility: Low (but should increase this week)
Daily results of multiple indicators (from Yardeni Research): https://goo.gl/eT3fzA
Comment: Last week, the bulls had a chance to run the ball down the field, but failed to score (market retreated last week). Hopeful bulls have their eye on S&P 3000, while the bears are cheering the multiple failed rallies, a huge warning sign. At this moment, it is impossible to know which direction the market will go this week. We are definitely at a crossroads, as the indicators reflect.
Because of the FOMC meeting this week, and the chance the Fed will raise interest rates, volatility should increase. It will not be an easy trading environment. Look for market reaction to the words and actions of the Fed. Investors are still ridiculously hopeful the market cannot go down for long, which makes me cautious.
Bottom line: The market could go in either direction and will likely go in both this week. It should be a wild ride before and after the FOMC meeting. Patience is needed until it’s obvious which side wins.