Bullish or Bearish? Week of March 4, 2019

Here are the most recent market indicators:

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

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

S&P 500 one-month trend = Uptrend (Bullish)

RSI: (S&P 500) @69.35 = Overbought (Bearish)

MACD: Above zero line but flattening = Neutral

Daily Intraday Volatility: Moderate

Comment: MACD is giving us a signal that the S&P 500 is getting tired and exhausted even as it climbed above SPX 2800. Futures are higher on Sunday night so it will be interesting to see how much higher (or lower) it can go. There are signs of exhaustion but it’s better to wait for confirmation. Volume has been low (buyers appear to be on strike), and the market remains overbought. One of these days there is going to be a major pullback, so be prepared. Enjoy the party while it lasts. It appears as if everyone has the same idea: wait for a major pullback and buy on the dip.

Bottom line: For the second or third week in a row: Wait and see what the market will do. The big question is how high it can go before reversing.


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

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