“Short term sentiment is very negative. We’re told that the traders on the floor of the NYSE are skeptical of the rally. That is very bullish. Also, the CBOE Put call ratio is pretty high. More on that in the chart below”

Todd Market Forecast for Thursday May 26, 2016

Available Mon- Friday after 6:00 P.M. Eastern, 3:00 Pacific.

DOW – 23 on 50 net advances

NASDAQ COMP + 7 on 300 net declines

SHORT TERM TREND Bullish

INTERMEDIATE TERM TREND Bearish

STOCKS: Today was a consolidation day after two sharp up sessions. Currently, the S&P 500 is overbought and in a resistance zone.

But, short term sentiment is very negative. We’re told that the traders on the floor of the NYSE are skeptical of the rally. That is very bullish. Also, the CBOE Put call ratio is pretty high. More on that in the chart below.

GOLD: Gold was down $4. Today, even though the dollar and rates were down, there was an expectation for higher rates because of the aforementioned “good” economic news.

CHART: The 20 day moving average of the CBOE put call ratio is above 1.08. This tends to be bullish.  

BOTTOM LINE:  (Trading)

Our intermediate term system is on a sell.

System 7 We are in cash. Stay there for now.

System 8 We are in cash. Stay there.

News and fundamentals: Durable goods orders were up 3.4%, better than the expected rise of 0.3%. Jobless claims were 268,000 less than the consensus 275,000. Pending home sales rose 5.1%, better than the anticipated 0.8%. On Friday we’ll get the first revision of GDP and Janet Yellen speaks (again).

Interesting Stuff: Happy Birthday Dow Jones Industrials. It was started on this date in 1896 with 12 companies, none of which are included today. Interesting that it was down 30% by August, due to political uncertainty revolving around the possible election of William Jennings Bryan who campaigned against the gold standard.

TORONTO EXCHAN GE: Toronto was up 116.

BONDS: Bonds were lower.

THE REST: The dollar fell back. Silver was marginally higher. Crude oil was higher again.

Bonds –Bearish as of May 18.

U.S. dollar – Bullish as of May 13.

Euro — Bearish as of May 13.

Gold —-Bearish as of May 9.

Silver—- Bearish as of May 9.

Crude oil —- Bullish from May 24.

Toronto Stock Exchange—- Bullish from January 22.

We are on a long term buy signal for the markets of the U.S., Canada, Britain, Germany and France.   

related: Yet ANOTHER Billionaire Warns About Coming Chaos … Maybe There’s Something to This Trend?