Bullish or Bearish? Week of Sept. 19, 2016

Here are the latest technical and sentiment indicators: 

Technical indicators

S&P 500 (daily chart) is below its 50-day MA and pointing down = Bearish

MACD (S&P 500; 19,39,9) is slightly above the zero line and pointing down = Neutral

MACD (S&P 500; 19,39,9) is below its signal line = Bearish

S&P 500 support is 2,122 (100-day MA), 2,050, and 2,000. 

 

Sentiment indicators

II survey: (Sept. 13) 49% Bulls; 22.6% Bears = Bearish

AAII survey: (Sept. 14): 27.9% Bulls; 35.9% Bears = Neutral

VIX: @ 15.37 = Neutral

RSI: (S&P 500) @ 42.91 = Neutral

 

Comment: Market is down but not out. The Fed and BOJ have market-moving meetings and statements this week. It’s a good idea to sit on the sidelines and watch to see if market continues to retreat, or if the central bank can keep markets calm. The odds are good volatility will continue during the week. Nevertheless, market typically moves higher right before and during Fed meeting. 

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