Stock Market

Fundamentals
The weekly coincident fundamental indicator took a substantial dip from early Apr. through mid
May, but has been essentially flat or stable since. The spring correction of the market trailed
the dip in the weekly indicator by several weeks, and has regained much of the ground lost in
the past two weeks as the weekly fundamental indicator continued to stabilize. The market has thus
started to run ahead of the weekly indicator. This is not an uncommon occurrence, although progress
of the stock market is likely to be modest without positive follow through on the fundamentals side.

Technical
We are in a confirmed shorter term uptrend that remains moderately overbought and which is still
on a short term trajectory that is too steep for comfort. Interestingly enough, the $SPX once again
pulled back into the trading band this past week. See here.