Once again, despite a mid-week sell-off, the trends of the three main US indices (DJIA, NDX and SPX) remain up in all three time frames - daily, weekly and monthly.
We mentioned previously that whether the indices move up, down, or sideways, market internals constantly move between overbought/oversold levels. This upcoming week we'll have a good chance to test this hypothesis once again.
As the chart below shows, market internals have been deteriorating until last Thursday, and are just turning up:
Judging by the past history of this indicator, overly aggressive bears should be careful not to overstay their welcome. 1370 remains the pivot level to watch for signs of escalating trouble for weekly SPX (courtesy of Oddstrader app):