Bullish or Bearish? Week of May 10, 2021

Here is a link to my most recent book, Make Money Trading Options, which introduces a new trading strategy for beginners: Amazonhttps://amzn.to/3kqw5zQBarnes and Noble link: https://bit.ly/3rbr28Q


This is what the technical indicators are telling us this week: 

One-month trend = Bullish. The bulls took control last week.  To be precise, SPX rose by 51 points, from 4181 to 4232. The market continued on its merry way higher without a fear in the world. The futures are higher on Sunday night.

Mid-term (50- and 100-day MA) = Bullish: The indexes are well above their 50- and 100-day moving averages. 

RSI: (S&P 500) @ 73.18 (WEEKLY) = Extremely overbought. RSI is in the danger zone (above 70 on the weekly), however, indexes and stocks can get more overbought before reversing. 

MACD (WEEKLY) = Bullish. MACD is above its zero line and above its 9-day Signal Line. Until MACD gives a sell signal, the bull market is intact. 

Daily Intraday Volatility (VIX): 16.69 = The VIX is on the low side, reflecting the lack of fear in the market.

Barchart Stock Evaluator for SPY and QQQ (link below): SPY and QQQ are both 100 percent buys (according to this indicator). 

Comment: Because of an animal emergency, I must be brief (and sorry for being late in posting): The bulls are in charge unless something dramatically changes. RSI is giving us a warning sign.

Good luck this week and look for any clues of a reversal.


Stock evaluation program from Barchart: https://bit.ly/3v9Nj9G 

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: https://wolfstreet.com

I will notify you of my posts via twitter@michaelsincere

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