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 slightly above its signal line = Bullish
Observe: S&P 500 support @ 2400
Sentiment Indicators (+RSI)
II survey: (May 23): 51.9% Bulls; 18.3% Bears = Bearish
AAII survey: (May 24): 32.9% Bulls; 30.0% Bears = Neutral
VIX: @ 9.81= Bearish
RSI: (S&P 500) @ 63.05 = Near overbought
Comment: The bull market continues as the S&P surpassed 2400, although not with strong volume or conviction. Nevertheless, the market is in an uptrend, and if there is a pullback, the only strategy that is working is “buy the dip.” One day buying the dip won’t work, but until that day comes, you follow the trend. It’s true we’re getting ever closer to a correction (and bear market), but the inevitable smash could be months away, and perhaps even next year. Meanwhile, every pullback has been a buying opportunity. The ridiculously low VIX is a warning sign, and RSI is near overbought. Otherwise, it looks like blue skies ahead…….(for now).