Bullish or Bearish? Week of August 28, 2017

Here are the latest technical and sentiment indicators:

 Technical Indicators (daily chart)

S&P 500 is slightly below its 50-day MA = Bearish

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

MACD (S&P 500; 19,39,9) is above its signal line but heading down = Neutral

S&P 500 support @ 2400, resistance @ 2450


Sentiment Indicators (+RSI)

II survey: (August 22): 48.1% Bulls; 18.3% Bears = Neutral

AAII survey: (August 23): 28.1% Bulls; 38.3% Bears = Neutral

VIX: @ 11.28 = Bearish

RSI: (S&P 500) @ 46.32 = Neutral

Comment: What a difference a month makes! When I left for vacation a month ago, all the technical indicators were bullish along with sentiment. A month later, the technical indicators turned sour, and market enthusiasm has cooled. We have been at a crossroads before, and here we are again. Although the market is struggling, it’s too early to proclaim the bull market over. All we can do is sit and watch to see if the S&P can retake the 50-day moving average on strength, or if it continues to retreat. I would not be surprised to see a short-term selloff this week, but then again, the market has risen from the ashes many times before. We’ll get valuable clues this week. Hint: If there is a short-term selloff, the buy on the dippers will enter at 2400. That’s when it will get very interesting. 


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