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The strong short-term uptrend for the SPX still appears to be in place, even if the rest of the market has cooled. The uptrend line is intact, and the price tested new highs on Thursday and Friday. In addition, the number of NYSE new 52-week lows has remained at harmless levels.
 

The SPX continues to respect the 21-day EMA, and the five-day average of new highs/new lows remains in the black.
 

The two leading ETFs have also continued to respect their 21-day EMAs.
 

While the SPX reached new highs, the PMO index, representing the broader market, reached all the way down to the bottom of its range. When the PMO is at this level, this is usually time in which I am more comfortable looking for opportunities to buy.

However, the SPX typically pulls back in price while the PMO declines, so this is an unusual circumstance. This is making me uncomfortable and a bit confused, so maybe it isn't the time to be overconfident with new purchases.
 

Both of the major indexes ended the week on reasonably strong closes. This is not the look of a market in a short-term downtrend.
 

This chart is negative, showing just a bit of weakness, but nothing worrisome.
 

The same thing seems to be playing out here -- nothing to see here.
 

This junk bond ETF bounced bullishly off its 21-day EMA, and it now looks to be headed higher. This is a bullish indicator for stocks.
 

Here is a new chart. The top panel shows the five-day new highs/new lows. On Friday, it turned upwards while the PMO index ticked down to the zero level. This has sparked more confusion, but I think I have to side with the bulls and interpret this as positive action for now. Caution is warranted, however. 
 

Here is a similar chart, but showing the 50-day correlation of the same five-day new highs/new lows average provided above. It is overlaid with the RSP ETF. Basically, this means that when the five-day average of NH/NL ticks upwards, the RSP is likely to rise in price.
 

Bottom Line

I had purchased inverse ETFs to hedge my positions if the market were to take a tumble lower as the PMO index declined. However, when the SPX hit new highs on Thursday, I was forced to cover the shorts. I'm about 75% invested in top-quality stocks.

Outlook Summary

• The short-term trend is down for stock prices as of July 11.
• The medium-term trend is neutral for Treasury bond prices. 

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Improvement In A Shortened Trading Week
Negatives To Watch In A New Short-Term Uptrend