Bearish or Bullish? Week of October 17, 2016

Here are the latest technical and sentiment indicators:

 

Technical Indicators

S&P 500 is below its 50-day and 100-day moving averages = Bearish

MACD (S&P 500; 19,39,9) is below the zero line = Bearish

MACD (S&P 500; 19,39,9) is below its signal line = Bearish

S&P 500 is even with support @ 2,130 = Neutral

 

Sentiment Indicators

II survey: (Oct. 11) 46.1% Bulls; 23.1% Bears = Neutral

AAII survey: (Oct. 12): 25.5% Bulls; 33.7% Bears = Neutral

VIX: @ 16.12 = Neutral

RSI: (S&P 500) @ 42.47 = Neutral

Comment: Market has taken a turn for the worse. The technical indicators are telling us to be very, very careful. Friday’s intraday reversal was another warning sign. Be on the lookout for failed rallies. Cash is king this week, and start brushing up on buying put options (recommended if experienced) and short selling (only for the pros).  

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