Medium-Term Evidence Remains Bullish

There is no change in the Stock Market Summary this week. All indicators are in bull mode with no signs of weakness within the market. After a sharp advance the last three weeks, the major index ETFs are short-term overbought and ripe for a pullback or consolidation. RSI for the S&P 500 ETF (SPY) has been above 70 for six days now. However, MACD (5,35,5) remains above its signal line as SPY continues to rise.

• AD Lines: Bullish. The Nasdaq AD Line surged above its January high and is nearing its Sep-Oct highs. The NYSE AD Line hit a new 52-week high this week and remains in a clear uptrend.
• AD Volume Lines: Bullish. The Nasdaq and NYSE AD Volume Lines hit new 52-week highs this week. 
• Net New Highs: Bullish. Nasdaq and NYSE Net New Highs remain at high levels and the Cumulative Net New Highs lines remain above their 10-day SMAs (rising). 
• Bullish Percent Indices: Bullish. All major index and sector BPI's are above 50%.
• Fear Index: Bullish. The S&P 500 Volatility Index ($VIX) and Nasdaq 100 Volatility Index ($VXN) broke to new lows. Low and falling volatility remains a positive for stocks.  
• Trend Structure: Bullish. The Russell 2000 ETF, Nasdaq 100 ETF, S&P 400 MidCap ETF, S&P 500 ETF and Dow SPDR (DIA) broke above their January highs this month.
• SPY Momentum: Bullish. But overbought. The Aroon Oscillator surged above +50, MACD (5,35,5) moved back into positive territory and RSI surged above 60 in late February. RSI moved above 70 six days ago. 
• Offensive Sector Performance: Bullish. The Consumer Discretionary SPDR (XLY), Financials SPDR (XLF) and Industrials SPDR (XLI) broke above their January highs. The Technology SPDR (XLK) remains below its January high, but QQQQ and the Nasdaq broke their January highs. 
• Nasdaq Performance: Bullish. The Nasdaq has been leading the NY Composite since early February. 
• Small-caps Performance: Bullish. Small-caps and mid-caps outperformed large-caps since early February. 

Breadth Charts have been updated (click here)