Monday, July 26, 2010

Signs of strength, Signs of caution...

Signs of Strength:

Breadth indicators have risen modestly, on a weekly basis, not overbought on this time scale:

Put/Call Ratios not extreme (although $CPCE a little more problematic than the overall ratio):

$SPX breakout:

X-Trend indicator not yet at extremes:

Signs of Caution:

Short term:
$RUT at some high trendlines, trying to break through...

Slightly worrying sentiment appeared tonight:

Longer term:

Important question, when will this wedge in the $VIX resolve bullishly, and therefore bearishly for the market? This is not yet clear, but we have to watch it closely:

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