The bullish percents continue to point lower confirming the short-term downtrend.

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The number of 52-week lows is still a bit elevated which also confirms the short-term downtrend. 

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Bonds have found support and have started to rally.

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The 10Y yield has dipped (prices higher, yields lower).

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But the dip isn't enough yet to change the longer-term outlook.

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German yields provided advance warning that US yields were likely to dip.

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Interesting comments about corrections. This is via "VIX Squared" on Twitter.

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Outlook Summary:

I am expecting a choppy, headline-driven, sideways market between now and the November elections. I still plan to buy the dips for short-term gain, but over time I plan to continue to reduce my overall exposure to stocks.

The expected US economic growth rate is back down to the 2% level.

Higher rates are now a headwind for US stocks. The recent tax cut, the 300 billion spending increase, and the already out-of-control federal deficit are a set up for a very dangerous spike in interest rates.

Once again, the problems in Europe related to debt and the banking system are serious issues.

Something else to consider is the Mueller investigation. I worry that the headlines generated by the investigation may rattle the markets more than people are currently anticipating. 

Based on market seasonality, Mike Burk is projecting a medium-term stock market peak in May which sounds about right to me.

• The long-term outlook is increasingly cautious.
• The medium-term trend is down.
• The short-term trend is down. 
• The medium-term trend for bonds is up.

Outlook from Bob Doll, Nuveen  (Bob Doll)

• Stocks are in a sideways holding pattern
• Rising rates and protectionism are headwinds
• Low risk of recession or bear market this year
• White House and mid-term elections present political risks
• 2018 could be mirror image of 2016

Investing Themes:

• Technology
• Banks and Brokers
• Payment Processors
• Gamers
• Defense
• Emerging Markets

Strategy:

My accounts are now about 60% stocks. The remainder is cash and bond funds. New purchases are on hold at least until the short-term trend corrects down to the bottom of its range.

Buy large cap stocks and ETFs on pullbacks of the medium-term trend.

Buy small cap growth stocks on break outs to new highs during short-term up trends.

Stop buying when the short-term trend is at the top of the range.

Take partial profits when the uptrend starts to struggle at the highs.

Never invest based on personal politics.