The PMO index topped out a few days ago, and started pointing lower yesterday. I think it means that the best buying opportunity for this short-term up-cycle is past, and now we watch and wait for signs of weakness. While we are waiting, we let our winning positions run.

Overall market risk is much lower when there are very few new 52-week lows. So, at the moment, market risk is looking a lot better than it did a few days ago.

The bullish percents are pointing higher, and from a level that gives them plenty of room to move.

Market participation is expanding nicely again.

The Leader List

The leader list has changed quite a bit over the last few days. There are several very interesting charts.

The Industrials sector is stair-stepping into new highs.

Could the Small Caps finally be breaking out?

Same for the Materials. These three charts look quite similar.

Outlook

The Value Line Survey is torn between not wanting to fight the tape, and the risks associated with such high valuations.

For my part, I don’t like the fact that there haven’t been any significant corrections. It makes me nervous.

The long-term outlook is positive.
The medium-term trend is up.
The short-term trend is up as of May-24.