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 below its signal line = Bearish
Observe: S&P 500 resistance @ 2400
Sentiment Indicators (+RSI)
II survey: (May 16): 58.1% Bulls; 17.1% Bears = Bearish
AAII survey: (May 17): 23.9% Bulls; 34.3% Bears = Neutral
VIX: @ 12.04 = Bearish
RSI: (S&P 500) @ 51.05 = Neutral
Comment: Last week was quite interesting as volatility appeared, if only for a day or two. This week I have my eye on the S&P 500. There is major resistance at 2400. If the S&P can blow past 2400 on heavy volume, it would be bullish. On the other hand, if the S&P is unable to surpass 2400 for any length of time, the chances are good there will be a major “topping out” reversal, likely within the next one to two weeks. This kind of market is dangerous because sudden reversals often occur in either direction. Nevertheless, my opinion is meaningless. Only the market is right so be alert. As I recommended over the last few weeks and months, have a healthy amount of cash on the side.
Bottom line: Now is the time to pay close attention to the market.