The dollar is up a small amount. Oil and copper are down. Gold and silver are flat. Bonds are down.
We got across-the-board improvement last week. The small caps led, and several breadth indicators reversed.
Long term I consider the market to be in great shape and am very confident new highs will continue to be made this year. Short term I consider the price action to be more neutral. The S&P is flat going back about three weeks, and the Russell small caps are flat going back to early December. I like the market, but there isn’t much near-term momentum.
The 10-day of the NYSE AD line is a good example of what I’m following right now. If the indicator gets above 0 and stays there, odds favor a continuation of the current move which began right before the election. But if the indicator gets rejected by 0 and drops (similar to what happened in October (red arrow)), the market will weaken further.