Trend is bullish, despite some conflicting indicators

The trend is your friend until it ends, as is said. The S&P is attempting new highs, as is the NAZ and the broad NYSE indices. Let’s go over the basics. Draw your own conclusions from these facts:

S&P

  • BULLISH – PRIME IMPORTANCE: Higher highs and higher lows are the definition of an uptrend. The S&P 500 (and other indices) remains well over its 40 week (200 day) MA, yet isn’t overbought
  • BEARISH – HIGH IMPORTANCE: I noted last week that breath, aka the New high/Low indictor, is diverging recently. Click here for that blog.
  • BULLISH – HIGH IMPORTANCE: Cumulative moneyflow is in an uptrend (bottom pane). Money still likes the market longer termed.
  • BEARISH – LOW IMPORTANCE: Chalkin Moneyflow oscillator (top pane) indicates divergence in the near termed moneyflow velocity.
  • BULLISH – LOW IMPORTANCE: Mid-termed momentum (RSI) and short termed momentum (stochastics) indicators are bullish.
  • BEARISH – MEDIUM IMPORTANCE: Longer termed momentum (MACD) fast and slow lines are diverging bearishly – however the histogram below the lines is heading up, which is neartermed bullish
  • BEARISH – MEDIUM IMPORTANCE: Sentiment studies of investor optimism done by www.sentimentrader.com suggest a bearish to neutral level of over-optimism. 25 of their indicators are showing excess optimism, none of their indicators show excess pessimism.

 

 

 

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