The short-term trend is up and this chart shows that there was some follow through today.
However, despite the uptrend, this PMO index hasn’t started to move higher yet. I don’t like this.
The Package Industry index is looking healthy. This index generally moves along with the economy and the broader market. So, when it points higher like this it favors higher stock prices. It looks a bit extended though…
Bottom Line: The market indicators are mixed just as they have been for months. I am still nervous about this market, but I have no idea when the larger uptrend is finally going to crack and provide a significant correction.
The Leader List
Over the last few days, Emerging Markets and Technology have been hot, while Consumer Staples have been weak and the Gold Miners sold off today,.
Materials has been promoted to the leader list.
The Russia ETF has been gaining strength, but it isn’t clear whether this strength will continue.
The Semiconductors have bounced back, but I noticed that the On Balance Volume is still weak.
Outlook
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. Also, we are entering the risky time of the year for market corrections.
The long-term outlook is positive.
The medium-term trend is … not sure.
The short-term trend is up as of July-12.
