Market Sentiment: S&P Bullish Percent at Resistance
The S&P Bullish Percent has reached the reaction high resistance from the start of the year. This follows the break of resistance in the Summation Index and Percentage of Stocks above 50-day MA. Even the former lagging Percentage of Stocks above the 200-day MA has reached resistance from last August highs:
All very healthy for the long term even if the short term this has been thin air for the best part of a month.
The "Death Cross" between the 50-day and 200-day MAs of the VIX shows a long term shift towards low volatility; even if in relative terms @33 it is near the upper range of volatility for a bull market but well below the lows of a bear market.
Having said that, the cyclical bear market has at least a year left in the tank but the worst looks behind us. But the secular bear still has a cyclical bull and bear market ahead of it; the next cyclical bear market will probably come on the back of all the inflation the current stimulus will generate. Gold Bugs are a bear cyclical too early.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.
All very healthy for the long term even if the short term this has been thin air for the best part of a month.
The "Death Cross" between the 50-day and 200-day MAs of the VIX shows a long term shift towards low volatility; even if in relative terms @33 it is near the upper range of volatility for a bull market but well below the lows of a bear market.
Having said that, the cyclical bear market has at least a year left in the tank but the worst looks behind us. But the secular bear still has a cyclical bull and bear market ahead of it; the next cyclical bear market will probably come on the back of all the inflation the current stimulus will generate. Gold Bugs are a bear cyclical too early.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.