As the market rallied from around the 1080 level to recent highs at 1125 on the S&P 500, the models maintained this bullish stance. Now, however, the intermediate-term overbought indicators are turning moderately bearish. Interestingly, the long-term model remains just moderately bullish, even with the relatively strong rally.
A "look-ahead" at probable intermediate-term signals shows that (depending on market action), the intermediate overbought-oversold indicators will be bearish for about a week or so. Long-term stock investors may not want to take action on a short-term change in model indicators but shorter-term traders may want to take profits.
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