The Weekly Trader

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

S&P 500 is above its 50-, 100-, and 200-day MA = Bullish

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

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

S&P 500 support @ 2240, 2225, and 2200

 

Sentiment Indicators (+RSI)

II survey: (Jan. 10): 58.6% Bulls; 18.3% Bears = Bearish

AAII survey: (Jan. 11): 43.6% Bulls; 27.0% Bears = Neutral

VIX: @ 11.23 = Bearish

RSI: (S&P 500) @ 61.33 = Neutral

Comment: Market is in a holding pattern thanks to the computer algos which buy on every dip. We’re still overbought at nosebleed levels but until sentiment changes, nothing changes. CSX is the poster child for overbought: a railroad company rising like a 1999 Internet stock. No one can predict the date and time, but the market is way overdue for a nasty pullback. And if sentiment also changes, that pullback could be worse than expected. 

Update: CSX is on a roller coaster ride. It sank after earnings were announced (-4%), but then rallied back the next day (+23%). FYI, it was a bull raid, a classic short squeeze.

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

S&P 500 is above its 50-, 100-, and 200-day MA = Bullish

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

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

S&P 500 support @ 2240, 2225, and 2200

 

Sentiment Indicators (+RSI)

II survey: (Jan. 3): 60.2% Bulls; 18.4% Bears = Bearish

AAII survey: (Jan. 4): 46.2% Bulls; 25.2% Bears = Neutral

VIX: @ 11.32 = Bearish

RSI: (S&P 500) @ 64.51 = Neutral

Comment: When you’re in a market bubble, it feels really good, and most don’t realize they’re in one until it’s too late. My technician friends say we’re at rarified overbought levels, and I believe them. Nevertheless, it’s too dangerous to short bubbles so enjoy the ride while it lasts. Last week, buying on the dip worked as the S&P bounced off of 2240. Another clue we’re in uncharted territory is a steady transportation stock like CSX is acting like a 1999 Internet stock. Unreal. 

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

S&P 500 is above its 50-, 100-, and 200-day MA but turning down = Neutral

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

MACD (S&P 500; 19,39,9) fell below its signal line = Bearish

S&P 500 support @2240, 2225 and 2200

 

Sentiment Indicators (+RSI)

II survey: (Dec. 27): 59.8% Bulls; 19.6% Bears = Bearish

AAII survey: (Dec. 28): 45.6% Bulls; 25.7% Bears = Neutral

VIX: @ 14.04 = Bearish

RSI: (S&P 500) @ 51.66 = Neutral

Comments: The S&P was able to pull out a 8.50% gain for the year thanks to a last minute rally. It’s too early to cheer because danger signs have increased. Examples: The VIX spiked but is still in the basement; MACD has made a slight turn downward;  S&P support at 2240 was taken out last Friday, which is not a good sign; sentiment surveys are way too bullish, and we still haven’t taken out Dow 20,000. Let’s see if volatility returns to this overbought market, and if it does, it will be a rocky road with many opportunities for traders. Another interesting observation is retail investors have been moving billions of dollars from managed mutual funds and buying index funds. (I wonder how that will turn out.)

 

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

S&P 500 is above its 50-, 100-, and 200-day MA = 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 @ 2240, 2225, and 2200

 

Sentiment Indicators (+RSI)

II survey: (Dec. 20): 59.8% Bulls; 19.6% Bears = Bearish

AAII survey: (Dec. 21): 44.6% Bulls; 29.2% Bears = Neutral

VIX: @ 11.44 = Bearish

RSI: (S&P 500) @ 65.97 = Overbought

Comment: Many say that Dow 20,000 is just a number, but they are wrong: It’s an important psychological pivot point. If the Dow is able to rise above it, and stay there, that is bullish. If it fails, that is bearish. All we want for the New Year is an established trend, and we don’t care if it’s an uptrend or downtrend as long as it lasts for longer than a few days. 

Here’s a link to my most recent MarketWatch column: goo.gl/uh6xv7

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

S&P 500 is above its 50-, 100-, and 200-day MA = 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 @ 2240, 2225, and 2200

 

Sentiment Indicators (+RSI)

II survey: (Dec. 13): 59.6% Bulls; 19.2% Bears = Bearish

AAII survey: (Dec. 14): 44.7% Bulls; 32.3% Bears = Neutral

VIX: @ 12.20 = Bearish

RSI: (S&P 500) @ 67.51 = Overbought

Commentary: It is unknown if there will be a Christmas rally or a pullback. It’s always possible for an extremely overbought market to get more overbought. If you are on the sidelines and can’t stand to miss the Dow 20,000 party, you can initiate a small position. It’s not the time to go all-in, however, as stocks will likely follow bonds, gold, and oil in the future (i.e. lower).