Bottom line
- The weight of the evidence has turned neutral, with offsetting extremes in a mixed environment
Market environment Positives Negatives 1. Price pattern 1. McClellan Summation 2. Moving averages 2. % of Stocks in Correction 3. % Stocks > 200-Day 4. Net New Highs / Lows Sentiment / Breadth / Misc. Positives Negatives 1. Confidence neutral and rising 1. Still signs of options speculation 2. Spring thrusts, recoveries 2. Equities high vs GDP, Assets 3. Commercial hedgers net long 4. Easing internal momentum 5. Excess liquidity is still high Other Sectors and Assets Positives Negatives 1. Energy long-term (here and here) 1. Skewed tech (here and here) 2. Dollar test
