On May 28 a short-term downtrend started which was confirmed in the chart below with the PMO index turning lower from near the top of its range and A/D line momentum indicator turning lower as well.

Despite the start of a new downtrend for the majority of stocks, the most influential of the large-cap stocks rallied and pushed the two major ETFs to new all-time highs. I can't reconcile that these ETFs are touching new highs while the indicators are pointing lower, so I marked the short-term trend as "not sure". 

The bullish percents are mixed. The NYSE bullish percent is pointing lower but the Nasdaq bullish percent is above its 5-day average. However, it isn't convincing me that it is ready to move much higher. I think that this chart continues to confirm the downtrend for the general market.

The Summation Indexes are certainly pointing lower in a convincing fashion.

It is confusing to see the SPY and QQQ reaching new all-time highs while the majority of stocks are struggling short term. It shows how the large caps can mask the trend of the larger market. There's nothing wrong with that though, and we just have to understand this while we watch and wait for the best opportunities to buy and sell stocks.

At the moment, I have a large percentage of my accounts in cash as I wait for the next buying opportunity.

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These are two of the largest technology ETFs representing the most important sector of the stock market. As long as these ETFs trend upwards, the general market has to be viewed as longer-term bullish and favoring higher stock prices.

Here is a look at the same ETFs but with a weekly chart. I'm not seeing much to convince me that these ETFs will be headed lower anytime soon which is bullish for the general market.

This is my favorite longer-term stock market trend indicator, and it continues to point to higher prices.

Treasury yields are driving people crazy as they coil sideways. These yields seem to change direction every other week based on economic reports that are equally confusing.

Talk about changing directions! A few weeks ago we were all convinced that commodities were headed towards exceeding last summer's highs. Now, a trendline may have been broken and this ETF looks like it is headed lower, maybe.

Gold tumbled this past week but it is barely a blip and this super-bullish-looking chart.

The ECRI economic index is pointing lower, although as long as it remains above the 2-level it means to me that the economy is expanding and in the longer term, it favors higher stock prices. I like to focus on this index and just ignore the endless reports on the news.

More By This Author:

The Short-Term Uptrend Is On The Ropes
The Short-Term Uptrend Has Continued
Short-Term Uptrend Began In A Choppy Market