Bullish or Bearish? Week of Oct. 30, 2017

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

S&P 500 is above its 50-day MA = Bullish

MACD (S&P 500; 19,39,9) is above its zero line = Bullish

MACD (S&P 500; 19,39,9) is equal to its signal line = Neutral

S&P 500 support @ 2560

 

Sentiment Indicators (+RSI)

II survey: (Oct. 24): 62.3% Bulls; 15.2% Bears = Bearish

AAII survey: (Oct. 25): 39.6% Bulls; 33.0% Bears = Neutral

VIX: @ 9.80 = Bearish

RSI: (S&P 500) @ 70.69 = Overbought 

Comment: The slow melt-up continues with few hiccups. The S&P retreated for a day but came back to make another all-time high. The higher we go, the more dangerous the market gets, and yet, it keeps rising. When a market gets this overbought, patience is the only emotion that wins…eventually. (Meanwhile, the bulls are partying well past midnight and beyond.)

Hint: The Fed meets this week, and for years, the market has moved somewhat higher during and after the Fed meeting. Let’s watch and see what happens.¬†

 

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