Summary: Markets have continued to strengthen off of their extremes and have started to reclaim important pre-liberation day  levels, though volatility remains elevated and we are reaching some short-term overbought conditions. The 200-Day Moving Average could act as resistance. This period of elevated market volatility is unique.

Risk On

• The major indexes were all up 3 to 3.5% on the week with all of them reclaiming their 50-Day Moving Averages. Though the sharp move higher has them approaching short-term overbought conditions on price. (+)
• Volume patterns confirmed the move up, heavily favoring accumulation days. (+)
• 12 out of the 14 sectors were up on the week, led by Transports and technology, pointing to growth, while Gold miners were down. (+)
• The New High New Low ratio continued to improve. (+)
• The color charts (moving average of the number of stocks above key moving averages) are positive in the short-run and starting to improve on the longer-term time periods. (+)
• Risk gauge improved to 100% risk-on. (+)
• Both value and growth continued to improve with Growth leading and neither in overbought condition. (+)
• Four of the six members of the modern family saw phase improvements. (+)
• Foreign equities continued to outperform the U.S. with developed equities hitting new recent highs. (+)
• Soft commodities softened this week, a potential positive for inflation forecasts. (+)
• Bitcoins strength continues as it looks to take out its all-time highs. (+)

Neutral

• The McClellan Oscilator is confirming the up move though running very rich at its highest levels in quite some time. (=) 
• Volatility continued to weaken with the market’s move higher but remains elevated. (=)
• Gold’s longer-term trend is intact, but currently correcting from overbought levels. (=)
• The dollar has started to stabilize after abosbing a large move over the last few months. (=)
• Rates are in a trading range as it waits for new information about the economic outlook. (=)
• Early May tends to be a weaker part of an overall strong seasonal trend. (=)

Risk Off

• All the indexes are below their six-month calendar ranges with some cycle theorists predicting a short-term top next week. (-)
• The number of stocks above their short term moving averages have hit overbought levels on all key US Stock Indexes(-)