More Improvement

Over the past week all of my core market health indicators improved. However, as you can see, they are all still deep in negative territory. They are clearly showing weakness in underlying market internals. There is a slight chance that a continued rally next week might bring my measures of core market risk and/or measures of the economy positive. In order to accomplish the feat it will require a continuation of the strong rally currently underway.

My market risk indicator has been trying to clear this week, but hasn’t been able to right itself. Next week will be key for this indicator. I suspect it will clear unless the market turns back down with some momentum behind it. Even a consolidation at current levels would likely clear the warning.

Conclusion

All of my indicators are still negative, but the recent rally has removed some of the underlying damage. Next week will likely be a make or break moment for the market.