S&P 500 Continues Intermediate Sentiment Decline

According to the charts below not a whole lot has changes since the March 4th post.  The long term sentiment (green signal line Chart 1 below) is still very positively sloped towards continued positive growth.  However, the intermediate line (blue signal line Chart 1) is still negatively sloped.  This indicates that we will likely see an intermediate pull back in the market.  If the drop begins this week a drop below 1352 would indicate a statistically significant move, and a potential buy opportunity (see Chart 2 below).

3/16/2012 S&P 500 Sentiment Signal (click to enlarge).

S&P 500 Intermediate Sentiment Decline

The S&P 500 Sentiment Chart (chart 1 below) is indicating that intermediate sentiment (blue signal line) is trending lower.  This suggests that the market will lose some of its momentum and may turn lower.  During this period, long term sentiment is indicating that one should hold.  If the market drops below the expected trading range of 1,318 it could be an opportune time to increase ones market position.  If the market moves above 1,420 it could be an opportune time to take some profit off the table (chart 2 below).  The slope of the intermediate line is currently indicating a market decline between now and mid March.