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 even with its signal line = Neutral
S&P 500 support @ 2450 and 2400
Sentiment Indicators (+RSI)
II survey: (August 29): 49.5% Bulls; 19.1% Bears = Neutral
AAII survey: (August 30): 25.0% Bulls; 39.9% Bears = Neutral
VIX: @ 10.13 = Bearish
RSI: (S&P 500) @ 60.13 = Neutral
Comment: As expected, the market took a hit last week, but the selloff lasted only an hour before the computer algos entered the market with buy orders, and the market went higher. Overnight, geopolitical concerns set the S&P futures back a little but it recovered. Bottom line: The bullish algos are in control. One day the uptrend will change to a downtrend and the algos will change strategies, but until that day arrives, be cautious and conservative with your trades.
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