Here are the latest technical and sentiment indicators:
Technical Indicators (daily chart)
S&P 500 is below its 50-day and 100-day moving averages = Bearish
MACD (S&P 500; 19,39,9) is well below the zero line = Bearish
MACD (S&P 500; 19,39,9) is slightly below its signal line = Bearish
S&P 500 is below support @ 2,130 = Bearish (2,077 is 200-day MA and next support level)
Sentiment Indicators
II survey: (Oct. 25) 47.1% Bulls; 23.1% Bears = Neutral
AAII survey: (Oct. 26): 24.8% Bulls; 34.1% Bears = Neutral
VIX: @ 16.19 = Neutral
RSI: (S&P 500) @ 41.05 = Neutral
Comment: As expected, the indexes took a turn for the worse last week. Most rallies failed and support levels were breached. The market is vulnerable but like a trapped animal, it could lash out in either direction. Because volatility is weak, it’s remains a dangerous trading environment. Keep your eye on the struggling bond market, which may provide fireworks in the near future.