Caution to the Bulls: SPY

I find it hard to be a bull in this market at the moment. The internals are screaming short on all accounts. MACD, RSI, MFI, and Volume all suggest a sell off is in the horizon. You can see the trend lines placed in the technicals. As price slowly marches up, the technicals continue to tread lower. The volume in the sell off last week was twice as much as the volume seen today. I circled where this occurred two weeks ago. Then last week we saw a big spike in volume as the market went lower. This is a sign that many including the smart money are skeptical about the upside. I would not be surprised to see a slow grind up the rest of the week. It is possible that the market even creates new highs. Unless we see more volume here I can not recommend looking to the upside. For now I am sitting on my hands waiting for confirmation of a short.

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