Saturday, May 17, 2014

Market Trend Model Indicates Trend Change for S&P 500

The Market Trend Model looks decidedly negative after last week's sloppy price action.

On Monday and Tuesday the S&P 500 finally attempted to breakout to new highs.  However, volume was well below average and the breakout failed during the next two days on increasing volume.  The weekly NYSE Summation Index has also turned negative, indicating lower prices are on the horizon.

And the Nasdaq continues to show stalling action as it tried and failed to recapture its 10-week moving average.

The Russell 2000 looks even more ominous as it reversed from its 10-week moving average on its highest weekly volume in over a year.  This index is also on the cusp of breaking below the neckline of a head and shoulders pattern.

At this moment in time it appears to me the stock market has put in an intermediate term top.
View all of the Market Trend Model price charts at