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The stock market has only continued to hit new highs. The rally off the lows of April couldn't be more impressive.
 

Both the SPX market cap-weighted and the SPX equal-weighted ETFs are advancing, although the market cap-weighted is the superior ETF for price appreciation. This means that the leading stocks are also the largest stocks in the S&P 500.
 

At Investors.com, the 21-day EMA is the critical moving average indicating the short-term direction of the market. There were a few blips under the 21-day in August for both ETFs, but certainly nothing that looks too serious.
 

The leading sector ETFs also had some blips in August, but right now, they couldn't be looking any better.
 

The PMO index has not been very helpful since mid-August. This isn't really telling me anything.
 

The five-day average is what I often use to tell me that there might be a short-term trend change taking place. At the moment, the SPX and NDX both point to higher prices short-term, but the European ETF could be topping out in the short-term. I think the momentum is swinging away from European stocks and back to American stocks.
 

The market timing indicators that I use are a mess at the moment. They are pointing in different and contradictory directions. The summations shown below are a really good example. This chart is just not useful.
 

The number of new 52-week lows has generally remained at harmless levels, which favors higher stock prices. However, there are these occasional minor spikes, such as the one seen on the NYSE on Friday, to keep in mind. There hasn't been anything too worrisome, though.
 

Bottom Line

My stock market timing indicators are simply not useful right now, so I am just sticking with top-quality stocks that remain above their 21-day EMA. I will sell any stocks that show weakness below this moving average. I'm fully invested at the moment.

The short-term indicators may not be useful at the moment, but the longer-term indicator shown in the chart below has been very useful. This chart suggests owning stocks until the solid line dips under the red dotted line.
 

Gold and gold miner stocks have been on fire recently. The metal broke out spectacularly last year, and now the miners have done the same this year. The miners only recently passed above the highs from 2011, and therefore, this could be the beginning of something huge. I won't get too complacent, however, because these stocks are mining gold, and I find it very difficult to understand what makes the price of gold go up and down.

I will use the same rule with my gold mining stocks as I do with my other stocks. If the price dips under the 21-day, the stock is a sell candidate.
 

I've been skeptical about owning the small-caps, but look at this, they hit new highs this past week.
 

New highs were also recorded for the small-cap technology stocks. I really like the look of this ETF.
 

The semiconductor index also hit a new high. This is a bullish indicator.
 

This next chart features a nice breakout.
 

Outlook Summary

• The short-term trend is uncertain for stock prices.
• The medium-term trend is neutral for Treasury bond prices. 

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