Here are the most recent market indicators:
S&P 500 is below its 200-day moving average = Bearish
S&P 500 is slightly above its 50-day moving average = Bullish
S&P 500 one-month trend = Uptrend (with pivots)
RSI: (S&P 500) @59.92 = Slightly Overbought (Bearish)
Daily Intraday Volatility: Moderate
Comment: Last week, the market began on the wrong foot (lower) but during the rest of the week, at any sign of a selloff, the algos entered to rescue the market. Because of low volume and lack of enthusiasm, the rescue operation was successful, and the market ended nearly where it started.
The Fed has a meeting this week so that should increase volatility slightly. It’s unlikely the Fed will say anything to upset the market, so as long as volatility remains low, and with help from the algos, the odds are good the market will be flat to higher this week. Obviously, anything is possible, but Fed Chairman Powell appears willing to keep the party going a while longer (even though economic bad news is swirling around and coming closer).
Bottom line: Let’s see if volatility returns to the market. No can predict when it will return, except that it will again.
For daily results of multiple indicators, read Yardeni Research: https://goo.gl/eT3fzA
For insightful analysis of the stock market, read Lance Roberts:www.realinvestmentadvice.com
For insightful analysis of economic conditions, read Wolf Richter:www.wolfstreet.com