The long-term trend remains bullish, overall (though weakening), however the short-term trend has become range-bound over the last few weeks.  The uptrend that began on March 9^th, dominates the charts, but, after popping out of a symmetrical triangle two weeks ago, the markets have been unable to push higher.  The major indices and markets did close higher this week, but some signs of weakness are showing.

Long-Term Trend

Long-Term Trend

The long-term trend remains bullish since the March 9^th bottom.  However, the last two weeks have seen the markets entering a trading range between 93.25 and 96.50 on the SPY (our proxy for the S&P 500).  This is the second trading range in recent months after the market finally broke out of a month long range at the end of May.  Meanwhile, there is continued weakness in the MACD indicating that though we are in a bullish trend, the markets may be transitioning.

Short-Term Trend 

Short-Term Trend

The short-term trend entered a new trading range after breaking out of a symmetrical triangle at the end of May.  The moving averages do indicate a weakly trending bullish market, but the last few weeks have been stuck in a clear trading range.

Action

Wait for a breakout above 96.50 to re-establish uptrend or below 93.25 to indicate reversal of trend.

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