The SPX is overbought for the intermediate term, is getting overextended for the intermediate, and
fully valued on the more liberal valuation measures. The weekly cyclical indicator composites did
better last week but have been running flat for most of 2017. Outside of all that, the market is still
trending higher as players use the slow growth, low inflation, and expanding private sector liquidity
environment to coax the SPX higher. Market psychology remains formidably positive even though
there is a strong consensus that the market could easily correct by 10% at some point through mid
2018. With momentum measures on high, extended planes, you need to monitor the situation
diligently. SPX Weekly
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