Technical Assessment: Neutral in the Intermediate-Term

Summary

For the first time this month, the S&P 500 and the Nasdaq 100 (QQQ) have moved higher for two straight days — one of the few positive things we can say about August. The month has seen lower stock prices, higher bond yields, a higher dollar, and cratering crypto markets. This too shall pass. The one positive for stocks is the rapidly increasing bearish market sentiment, especially considering the major index pullbacks have not been close to serious. In a bull market, if sentiment quickly turns sour (and it was overheating quite a bit at the end of July) that generally is a bullish sign for the overall market.