Stock Market -- Technical

In recent weeks, the stock market has been working off a
powerful overbought based on internal supply / demand
fundamentals. It still looks like this process is not
yet complete.

Internal fundamentals -- varied measures of breadth -- show
a positive bias to the market with fading momentum as this
overbought is worked off. The weekly SP500 chart looks less
healthy based on some conventional technicals. Click it.

Note the overbought on the 10 week RSI, and the downturn on the
short run MACD. Note also that the current MACD at around plus
20 equates with recent tops that ushered in very sluggish
intervals. On balance, I am not bearish, but I am grumpy about
the set up for the opening gambit of the new year. The grumpiness
is elevated by the fact that the SP500 has twice failed to take out
the cyclical high of 1427 in recent sessions as well as recent
strongly bullish sentiment in the advisor sentiment surveys
such as II, Consensus and Marketvane.