S&P 500 is above its 200-day moving average = Bullish
S&P 500 is below its 50-day MA but above its 100- day moving average = Neutral
S&P 500 one-month trend: SPX broke its uptrend, went lower, and is now stalled in a sideways trend.
RSI: (S&P 500) @ 51.92 = Neutral
MACD: Below Zero Line but slightly above Signal Line = Neutral
Daily Intraday Volatility: 18.98 = Neutral. Volatility is elevated but not extreme.
Comment: As expected, the computer algos bought on the dip last week and brought the indexes close to the SPX 50-day moving average. How do I know it’s computer algos? Because volume was pitifully low all week. The latest algo game is gunning the futures market higher before the open. After the market opens, it often spikes higher, and then moves sideways the rest of the day. Bottom line: There has been little buying and selling by individuals and institutions. The good news for the bulls is there has been no panic. The bad news is there hasn’t been strong buying by individuals or institutions. (Note: S&P futures are lower on Monday night but nothing is certain until the open).
Right now, no one can predict which way the market will go. The indexes must rise above their 50-day moving averages (and stay above) for any hope of a strong bullish uptrend. Based on what I see on a three-month chart, this market is struggling. It’s as if most traders and investors are taking a “wait and see” approach to the market. That is reflected in the “neutral” settings on most of the indicators above.
For a more detailed and technical analysis of the current market, I’d like you to read the following piece by Sven Henrich (Northman Trader). He gives a bearish view of the market backed up with facts, and he could be right. Here is his excellent analysis: https://northmantrader.com/2019/08/31/thunderdome/
Jerome Powell speaks at 12:30 p.m. ET on Friday, and the jobs report will be released earlier that day. Obviously, this should be another volatile week, especially on Friday. One thing we can all agree on: this has been a difficult trading and investing environment, and that will continue for many months longer.
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