Technically, the SPX has been moving as we suggested in the Weekly Summary; moved to new highs, but is likely to fall back as the momentum indicators become over-extended (chart below).
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The 10-day MA of the put:call ratio continues to descend (bullish), but like the momentum indicators, it is getting over-extended and could turn around soon (chart below).
(Click on image to enlarge)
During the 2018 correction, our analysis showed that we were not at the start of a new bear market and that the bull market was not in the process of ending. As a result, our subscribers avoided the herd mentality of panicked-selling and the losses it created. We continue to monitor the Treasury cash balance and investor sentiment as the key indicators of the future.
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