SPX-- Monthly

Back on 10/2, the monthly MACD indicator for the SPX had just experienced a positive cross
and because I trust the indicator, I suggested the market could be poised to rise in the months
ahead. I suggested in the title that we could be entering a 'brave new world' because of how
expensive the market is and how hyper extended it is on the very long term, post WW 2 SPX
chart. The implication then was that a fresh uptrend could be starting for the current cyclical
bull market. Well, the market has gone on to new highs in the interim, but, of all things, the
positive cross for the MACD indicator is in virtual stall mode as price momentum has not been
strong enough to push it strongly higher.  SPX Monthly

So, we can give the indicator credit for the recent rally, but I think it is fair to say the jury is
out on sustainable positive price action going forward. You can if you want claim that the
market is on the overbought side currently and when it settles back, more positive action will
ensue and vindicate the monthly MACD. Could be, but I am in no hurry.