Juggernaut...

It's going up!!

Sentiment has pulled back from the highs... leaving room for a move in any direction.

Breadth has lifted significantly!

1. NYMO is hovering just above zero and is generally bullish.
2. NYSI is pointing up but will potentially leave another divergence if/when the SPX makes a new high, which is now only about 1% higher.
3. Cumulative NYAD is making consistent new highs after bullish divergence at the recent low.
4. Bullish Percent also printed some bullish divergence.

The relative performance of both RUT and COMPQ is a little bit indeterminate, but generally bullish.

 If the market is still going to make a 30% pullback this year we're in for some VERY steep drops!!

I've posted this next chart before but I'll post it again... The future relative performance of the Australian market looks very bullish.

In other news the gold chart looks like a clear bull market to me. The recent bear market reversed hard at the 50% retracement level and only slightly above a previous major high.

from bullish to bearish

A bit over a week ago the US market breadth was looking bullish... Not anymore (at least on an intraday basis)!!

The chart below shows my interpretation of the credible bearish astro forecasts that have been put out recently. If the price target proves to be valid then we're in for a very steep drop.

Today the XJO/SPI has made a third test of support... watch out below if the trend is down and the 4th comes soon.

The relative weakness of the Australian market relative to the NYSE has been going on for so long now that it seems to be a permanent fixture. This may soon change however. The chart below tells the story better than I can.

The bigger they are the harder they fall. Perhaps the Americans will be wearing the best shorts at the next party...

charts

It's a bit of a confusing picture at the moment, as the following charts will show.

The McClellan Oscillator had a clear divergence at the low last week, as did the cumulative NYAD (which has now hit a new high). The summation index has also turned. All bullish signs.

The Bullish Percent diverged at the high and has made a solid trend down.
The Russell 2000 has been weak relative to the SPX for months.

Both of course are bearish indications.

Vix is low but in the middle of it's range.
The Put/Call ratio's are not particularly extreme.
Both the CNN and NAAIM sentiment indicators were fairly extreme on the upside but have now come off considerably.

So sentiment isn't much help.

I would ordinarily be inclined to read the above charts as bullish however the astro indications are bearish so it's just muddy waters to my eye at the moment.

Revisiting some earlier charts...

2010 (1 x 7 years) had a mid April high followed by a big plunge into some May to July lows.

2003 (2 x 7 years) is just bullish all the way to the end of the year.

1996 3 x 7 years had an April or May high followed by a plunge into mid July.

So 2 out of 3 say that we top soon (but not yet) and go down.

Sometimes it all seems so obvious, but not at the moment!

Clear as mud?