Weekly Sentiment: Bearish
Daily Sentiment: Bearish
Simple as can be. Look at the chart below, inflation expectations from lower gas prices and used car prices need to show up in the CPI report before the market will turn. Until then expect a sideways/falling lower expectation. Below is the same -SPX chart. Although the double top (aka bottom) is holding up….the S&P 500 is trading within a wide range between 3800 to 4050. While I am bearish short term, the consolidating can create a breakout higher.
Earnings are almost over and jobless claims on Wednesday will give us the final hints of where we are likely to move in the market into the end of the year. Again, even though I am claiming that daily and weekly sentiment is bearish. I am still unsure in this market. There have been no hints on what direction we will go in the last two weeks.