The intermediate KST [momentum] for the S&P continues to move higher and is moderately overstretched. The good news is that the intermediate health indicator, which measures a basket of Dow stocks experiencing a positive KST, is still rising and it has a consistent record of leading the KST itself.
Finally, some measures of sentiment are flashing warning signals. Chart 17, for instance, measures advisors looking for a correction less those who are bearish. The raw data are published by Inverstorsinteligence.com. The recent high reading is not necessarily the kiss of death, but does point up the probability of a sideways or mild correction.
- Martin J. Pring - April 2013