The Mood Swing Away From Stocks Was Inevitable

I think we have a new short-term uptrend.

New 52-week highs have perked up to the point where a market uptrend can find its footing. Bullish.

The major indexes have started to tick higher while above their 50-day moving averages. Bullish.

Here are some of the interesting ETFs hitting new highs today… Defense, Small Cap Health Care, Consumer Staples Momentum, Cyber Security.

Do we have a new medium-term uptrend. Not sure, we’ll take a look tomorrow, but I like the looks of this chart.

Outlook Summary:

The mood swing away from stocks was inevitable after such a terrific run higher for stocks starting with the 2016 election.

I don’t think the bull market is over yet, but it is getting old and we have been very fortunate over the last ten years. Time to start appreciating what we have, and protecting it as best we can.
 

The long-term outlook is increasingly cautious. Reduce overall exposure to stocks on rallies.
The medium-term trend is down.
The short-term trend is up. 

The medium-term trend for bonds is up.