Nearly all of our indicators turned bearish in the last two weeks. The
breakdown of the Standard & Poors 500 Index ($SPX) below support
at 1680 was the trigger that turned the $SPX chart negative.
However, market breadth is already oversold, and buy signals
are beginning to appear from these indicators.
Equity-only put-call ratios have been interesting. The weighted ratio rolled over to a sell signal a week ago. The standard ratio, however, has been unable to confirm a sell signal.
Meanwhile, volatility indices ($VIX and $VXO) have pushed
upward, developing an uptrend, which is bearish for stocks.
In summary, the indicators are now mixed. The sell signals were
well-timed, but the market drop quickly created oversold conditions.
Those have sparked a rally, which is likely to be short-lived, but we will
watch the indicators closely for any further bullish confirmation.