Here are the most recent market indicators:
S&P 500 is above its 200-day moving average = Bullish
S&P 500 is above its 50-day moving average = Bullish
S&P 500 one-month trend = Uptrend (Bullish)
RSI: (S&P 500) @69.70 = Overbought (Bearish)
MACD: Above zero line and moving higher = Bullish
Daily Intraday Volatility: Moderate
Comment: There isn’t a lot to add to what I wrote last week. The S&P 500 is creeping closer to 2800 while extremely overbought (RSI near 70). It is not wise to short a market in an uptrend even if it is overbought. All one can do is watch and wait to see how the market reacts during the week, and as it approaches SPX 2800.
Momentum day traders are making money chasing individual stocks on some days, but nearly everyone else appears to be in wait and see mode. The lack of buyers has kept volatility low while the machines chase after order flow. Meanwhile, bad news is swirling around but so far, the market has ignored it all.
Bottom line: Unless you’re a momentum day trader, watch to see how the market reacts at or near SPX 2800.
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