S&P 500 is above its 200-day moving average = Bullish
S&P 500 is at its 50-day MA = Neutral
S&P 500 one-month trend: SPX’s uptrend stalled at 3000 and retreated.
RSI: (S&P 500) @ 48.66 = Neutral
MACD: Above Zero Line and below Signal Line = Neutral
Daily Intraday Volatility: 17.22 = Low to Neutral
Comment: Last week, as expected, SPX rose above 3000, stalled, and reversed. The bragging of my investor friends, the extremely low VIX (13), and mixed economic news all combined to reverse the rally. And yet, there was no panic selling. We enter this week’s market at a standoff: The bulls were unable to push the markets above SPX 3000 for longer than a day. And the bears were unable to send SPX below its 50-day moving average. We can only sit and watch to see if one side is able to break above SPX 3000 or lower than SPX 2950.
The indicators above moved from bullish to mostly neutral as the indexes retreated last week. However, a number of individual stocks got slammed, including Roku and Netflix, to name only a few. It’s impossible to predict what is going to happen this week as we enter the typically volatile month of October.
Bottom line: Watch the indexes for clues and be prepared for any scenario. It’s impossible to predict market direction right now but that could change as the week progresses.
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