Bullish or Bearish? Week of Dec. 2, 2019

S&P 500 is above its 200-day moving average = Bullish  

S&P 500 is above its 50-day MA = Bullish

S&P 500 one-month trend: SPX is in a strong uptrend that appears unstoppable, but also unsustainable for the long term.

RSI: (S&P 500) @ 69.34 = SPX is overbought. At over 70 RSI, it will be extremely overbought.

MACD: Above Zero Line and above Signal Line = Bullish

Daily Intraday Volatility: 12.62 = Extremely Low (Bearish)

Comment: RSI went above 70 last week before pulling back slightly. The indexes are extremely overbought, and judging by the Sunday night futures, we could become more overbought.

The market is like a game of musical chairs and when the music stops, all hell is going to break loose. No one knows the time or place, or what will be the catalyst. However, if you believe in reality, then this market has a date with destiny sometime in the near future.

Veteran market watchers are in awe, and many have stopped warning others to be careful. At the moment, the market doesn’t care. Fueled by kind words from the Fed, additional quantitative easing, and low interest rates, the market seems unstoppable. And it is, until it isn’t.

Be cautious as we are in rarified air. This market is for short-term traders, long or short. Meanwhile, my article on blow-off tops was just published on MarketWatch: https://on.mktw.net/2OK343V

Bottom line: Stand back and observe. This market is one for the history books.


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

I will notify you of my posts via twitter@michaelsincere

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