The short-term trend is up, and the trend is at the top of the range. This means the best short-term opportunity to buy stocks has passed.

You only get about nine of these short-term opportunities to buy per year, so you have to be prepared to jump in when the time is right.

Now we watch and wait for signs that the short-term is topping out. One indication will be when this PMO index starts to drop. We'll look to other charts for confirmation.

The number of new 52-week lows is just a bit elevated which means the market is experiencing a degree of selling pressure that might not be revealed by the major averages.

The market is waiting for the Comey testimony on Thursday which means the buyers have stepped away temporarily. But the market is also overbought short-term, so some selling pressure is to be expected.

We also have this issue of declining market participation despite the broad based rally towards the end of last week.

Based on this chart alone, I would say the medium-term market trend is getting ready to roll over. But we have all seen this divergence many times over the years, and the market can exist in this divergent state for awhile.

Because participation is declining, it means the market is vulnerable if there is any upsetting news. Plus, the market is overdue for a meaningful correction.

Despite these caution signs, I am not really sure what to do to protect my accounts. We've seen so many sell offs that turn out to be temporary, and that don't amount to much.

Then again, it is when people (me) start to ignore the warning signs that people (me) get hurt badly. What to do?

The Leader List

There was a bit of shifting today among the leaders, but overall this is the same list as yesterday.

Gold Miners had a big day. This is an awfully nice looking break higher, and the indicators are confirming... although the relative strength could be a bit healthier.

Outlook

The market hasn't followed through this week after a looking so strong towards the end of last week.

Some caution signs are up which includes a degree of complacency among investors after having seen so many false caution signs over the last six months.

The long-term outlook is positive.
The medium-term trend is up..
The short-term trend is up as May-24.