It has been a great stock market rally, with $SPX advancing 200 points
in about a month. But the advance is slowing, and sell signals are
setting up (although none has actually been confirmed yet).
$SPX has minor support at 2030 and also below there, at 2000.
Market breadth has not been particularly strong, but it’s been
strong enough to keep the breadth oscillators on buy signals.
However, they are weakening, and one more day of negative breadth
will generate sell signals.
Volatility indices have generally remained subdued. $VIX traded
below 13 this past week. While that’s an overbought condition of
sorts, it’s not dangerous for stocks unless $VIX begins to trend higher.
In summary, the intermediate-term indicators are bullish for now,
but overbought conditions look like they’re going to produce some
sell signals soon. LM