I have been fighting the trend, and I hate doing that. So I am waiting for a strong signal that the top is in, and I expect that the signal will come from the bullish percent indicators.

Here is what Mike Burk had to say in his weekly column.

“The breadth indicators did ok last week and the secondaries outperformed the blue chips. However, Seasonality for the next few weeks is very negative.”

There are several charts that indicate a bit of weakness developing in the market. Mostly the charts show the buyers becoming exhausted, but not much to show sellers stepping in.
 

The Longer-Term Trend

Market internals and the moving averages continue to confirm the new highs in the indexes. This is a good looking chart.
 

 

 

Inflation-sensitive areas of the market are showing strength.
 

 

 

The ECRI and small caps continue to show strength favoring higher stock prices. The M2 growth has bounced back.

 

 

Oil prices are not too hot, not too cold. This favors higher stock prices.
 

 

The Dow Indexes look healthy favoring higher stock prices.
 

 

The longer-term chart of the broad market flipped from bear to bull in 2016. It favors higher stock prices
 

 

Bottom line: With the longer-term pointing to a strong bull market, all we need now is a pull back so we can buy some stock.
 

Sectors

The data in this spreadsheet is from ETFScreen.com. This data helps you stay with the best performing areas of the market.

I made the mistake of sticking with Health Care in 2016 even though it was underperforming. Longer-term I still like it, but I would have had better results owning the areas of the market outperforming the SPX.
 

 

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