“More workers report that their employers are hiring; fewer see people being let go:
MARKET INTERNALS FROM HUSSMAN - DISMAL RETURN/RISK
“Market internals remain broken here [as of Friday]. That may change, and it might even change soon. Until it does, we would be inclined to tread carefully, because this may be the highest level investors will see on the S&P 500 for quite some time. Choosing between potential catalysts - credit strains in China, the risk of disappointing earnings, or economic weakness, the incoming data is consistent with one conclusion: all of the above...our concerns about the equity market are not driven by...[recession]...Instead, we’re concerned about a host of reliable, testable, historically validated measures that – in combination – are associated with a dismal estimate of prospective return/risk here.” - John Hussman, Phd from Hussman Funds Weekly Market Commentary at
The concern that last Monday (24 June 2013) may have been the bottom due to the new-high/new-low reversal on Tuesday, remains. I have suggested that the Sentiment was too high, but there are no guarantees. With the rest of the world in the toilet it is always possible that the market could’ve reversed with extreme high sentiment and is now marching to new all-time highs.
2) The index must close 3% above the trend line.
If the Index can meet one of above tests for a trendline break, then the market is likely to continue up. Otherwise, a reversal down is likely.
Monday, the S&P 500 was up 0.5% to 1615 (rounded).