Intermediate Indicators go flat; LT bullish

Our intermediate oversold/overbought indicators are now flat to slightly bearish. However, our long-term systems remain bullish. The LT systems, in particular, "liked" the bounce off of recent support / market lows to current readings of 1110 on the S&P.

Perhaps we'll now continue to climb the "wall of worry" -- but be wary, because we are currently overbought a bit.

Stocks in the Long Run

Franklin Templeton and Stocks in the Long Run -- this is a nice look at long-term stock performance including poor ten-year periods like we have seen recently.

https://www.franklintempleton.com/retail/pages/generic_content/sales_tools/2020vision/pub/history_favors.jsf

More Contrarian Signs of a Top?

The other day, we saw that Goldman Sachs was calling for an end to the recession. Recent economic news has been cheerier. And -- most importantly -- the majority of financial news headlines and market calls have changed!

Up until recently, almost every market call by analysts was a return to the scary march and November lows. NOW -- we see that analysts are pointing to upside potential of 1070 from its current 1000 on the S&P. Some analysts are even calling for further upside of 10%-20% more!

The change in opinion could mean that we're finally due for a market turn. We hope that we don't see a return anywhere close to the March or November lows -- and do, indeed, see an end to the recession -- but we are also wary of the change in atmosphere. Markets don't continually go straight up or straight down. The pendulum will eventually swing the other way.