The short-term uptrend is starting to look a bit extended, and today's rally looked exhausted. So we are on watch for signs of the next short-term top.

New 52-week lows have dropped down to remarkably low levels. Very bullish for the general market. The bullish percents finally moved today, and these indicators are now in sync with a market that just keeps moving up and up.

The ECRI index has now dipped below the 2% level, and the ECRI has stated that we should expect an "economic slowdown ahead".

The SPX equal-weight index is trading below the 10-week. It looks like a change in trend to me. It think it is safe to call it a medium-term top.

I'm focused on the medium-term trend at the moment, and it looks like a downtrend has probably started with a target of a low around mid to late September.

The short-term downtrend continued today as the general market experienced a bearish reversal.

The short-term downtrend is well underway, but so far it hasn't even broken the 20-day. The signs of a more significant medium-term downtrend are not showing up yet.

John Murphy has pointed out that it has been a year since the market has experienced a 5% correction so it is overdue for a pullback. He also mentioned that we are entering the risky time of the year for market corrections.

We are probably near the top of the short-term cycle. It doesn't mean stocks are about to head lower, but I think it does mean that the best time to buy stocks has passed.

The short-term trend keeps pushing higher. It has been really impressive. But the best days to buy stocks are early in the trend, and we are past that point. Now, I think we just have to sit back and wait.

Technology, Financials, Industrials, Health Care are the sector leaders. The other areas may show occasional periods of strength, but I do much better as an investor when I just stick with the leaders.

Market health is improving, but investors are still favoring the “safe” stocks. This indicates continued marginal gains followed by choppiness.

The market broke higher after the French election. But since then, the SPX equal weight has traded within this box.

The market is trying to break out, but breadth isn’t improving. This condition often results in a choppy market. If the market can break out then bulls want to see breadth improve or we risk a good size decline when the rally ends.

Let's examine some new research that will help us answer the question, are stocks in the early stages of a life-changing rally?

The stock market is not on a solid foundation when Junk Bonds are heading lower. Then again, you can't panic every time JNK​ takes a dip. I am keeping an eye on this.