The Short-Term Trend

We are on watch for a new short-term downtrend. The PMO index is pointing lower, and now we watch and wait for signs that the major indexes are going to move lower too.

So far, though, this market is surprisingly healthy looking despite all the churn and the pop in volatility.

Outlook

Today’s Value Line Survey is cautious. We don’t want to fight a strong market, but we also want to be mindful of the risks.

For my part, I am not sure if the rotation out of large cap tech is a positive or a negative for the market. It is adding to market volatility, but it is broadening the rally. So, I really don’t know, which means I will just follow the indicators.

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