The Short-Term Trend
The caution flag is waving for the general market, but it is still just a caution.
The number of new 52-week lows is elevated.
The bullish percents continue to point lower.
The two charts above are early warning signs for the market, but there are still other charts that look healthy such as the cumulative advance/declines.
And then there is the VIX which is still amazingly low. Junk bonds are also performing well (not shown).
Outlook
I am getting defensive with my accounts, but you have to decide for yourself because the indicators aren't sending a clear message.
The long-term outlook is positive.
The medium-term trend is up, but it looks wobbly again.
A short-term up trend started May24, but I am now watching for the start of a new downtrend.
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