Bullish or Bearish? Week of July 24, 2017

Here are the latest technical and sentiment indicators:

Technical Indicators (daily chart)

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

MACD (S&P 500; 19,39,9) is above its zero line = Bullish

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

S&P 500 support @ 2450, 2400


Sentiment Indicators (+RSI)

II survey: (July 18): 57.8% Bulls; 16.7% Bears = Bearish

AAII survey: (July 19): 35.5% Bulls; 25.8% Bears = Neutral

VIX: @ 9.36 = Bearish

RSI: (S&P 500) @ 66.27 = Neutral

Comment: The market drifted slightly lower last week as it retreated from all-time highs. Cash is king in my opinion but the market could break through heavy resistance. This is the time to sit and watch what happens. Investors are dreaming of 2500 and 3000 on the S&P 500, and they could get their wish. Nevertheless, the higher we go, the higher the risks. Retail investors are all in while whispers of economic problems flirt through the air. Let’s see if the market has the strength to move much higher from here. Advice: Be ready for anything. 


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