This is what the technical indicators are telling us this week:
One-month trend = Neutral. SPX is above its 200-day MA but the uptrend stalled over the last two days. Note: SPX is at 3215 on Sunday night, slightly lower from a week ago. The 200-day is at 3041. If SPX falls below 3000, there could be trouble.
Mid-term (50 and 100-day MA) = Bullish. The S&P 500 is above its 50- and 100-day MA.
RSI: (S&P 500) @ 56.45= Neutral.
MACD = Neutral. MACD is above its zero line and and even with its 9-day Signal Line.
Daily Intraday Volatility (VIX): 25.84 = Neutral. VIX didn’t move much in the last week.
Comment: On Sunday night, futures are slightly higher but it’s best to wait until the morning to confirm. Last week, the market started off flat to high, but then fell on Thursday and Friday. The Fed is meeting on Tuesday and Wednesday, and traditionally, the market moves higher on the day of the announcement (but these are strange times, so anything is possible).
I hate to keep repeating myself but the financial news keeps getting worse while the market hangs on for dear life. You may have noticed that gold, and bitcoin, have broken out recently. Traders run to gold when there are economic problems. In addition, keep watching the dollar, which has been in a downtrend. People smarter than me believe that could change.
In addition to worsening economic news, the virus keeps spreading, the economic stimulus package has stalled, and the unemployment rate is too high. On the other hand, White House economic advisor Larry Kudlow appeared on TV and promised there would be a “V” shaped recovery.
Once again, let me turn it over to the professional analysts, who have done an excellent job of evaluating the current market. Wolf Richter (below) wrote a series of devastating articles on how the economy, and housing, is worsening.
In addition, here is a detailed analysis of the current stock market from Lance Roberts and Sven Henrich:
Lance Roberts @ realinvestmentadvice.com writes about “The Cobra Effect.” Must reading: https://bit.ly/32SbcXE
Sven Henrich @Northman Trader says this is the biggest financial bubble ever. Be sure to see his video: https://bit.ly/2CPC6on
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