Bullish or Bearish? Week of Nov. 28, 2016

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

S&P 500 is above its 50-, 100-, and 200-day moving averages = 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 @ 2159 (100-day moving average)

 

Sentiment Indicators

II survey: (Nov. 22) 55.9% Bulls; 21.6% Bears = Bearish

AAII survey: (Nov. 23): 49.9% Bulls; 22.1% Bears = Bearish

VIX: @ 12.34 = Bearish

RSI: (S&P 500) @ 70.69 = Bearish 

Comment: The melt-up continues, bringing the indexes into extreme overbought territory. When stocks are in the euphoria stage, it’s too dangerous to chase higher, but too risky to short. Traders: Wait for cracks to appear and be ready to ride it lower (but take most profits quickly) Investors: Stay away from this 1999-type party. It will end in tears, as it always does, but no one can say when. 

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