We are probably near the top of the short-term cycle according to this chart. It doesn't mean stocks are about to head lower, but I think it does mean that the best time to buy stocks has passed. At this stage, I am limiting new purchases and more likely to take partial profits.

The PMO index is at the top of the range which is when it is time to be on alert for signs of short-term general market weakness.

Inflation assets such as Energy and Gold Miners are bottoming out, maybe. Rates are rising a little, and Financials are showing some strength although not today...

These intermarket changes are supported by this chart from Martin Pring which suggests that inflation assets are outperforming deflation assets.

The Leader List

Today's strength was in REITs, gold. Weakness in Regional Banks.

I like the looks of this. A breakout, then a pullback to close the gap. At the moment, I am thinking it is an opportunity.

However, this looks more like a breakout failure.

Is this a break above the 50-day for Energy? It isn't very convincing yet, but maybe it just needs a few weeks to create a bottom. I'm not sure.

Is this just another run to the top of the range for gold?

Outlook

John Murphy has pointed out that it has been a year since the market has experienced a 5% correction so it is overdue for a pullback. He also mentioned that we are entering the risky time of the year for market corrections.
 

The long-term outlook is positive.
The medium-term trend is up.
The short-term trend is up as of July-12. Watching for signs of a short-term peak.