Has the S&P Index Topped Out for the Year?

Firstly, sorry for being MIA for such a long time. There had been quite a few changes for me this period so I had to take some time off. In a nutshell, I had recently changed jobs and time to adapt, and my computer crashed, so I needed to reinstall everything, retrieve all my data..etc. Well, you know how its like I'm sure.

Now, lets get back to the subject title. It appears that the markets had been rallying quite furiously the past few months, but market sentiments aren't exactly congruent. In Asia, employment seems to be picking up, but many in US are still asking themselves where the jobs are. In the article "Where are the @#$ Jobs?" by CNN, the writer mentioned that "There is no strong recovery without job growth" and that "there still doesn't appear to be much evidence of an improvement in the labor markets coming anytime soon".

Recent earnings reports, however, seem to be rather positive, with tech companies and even banks appearing to be doing well. Other reports though also mention that while big banks are surviving the crisis well now, its the small banks that have yet to climb out of the hole.

In this backdrop, perhaps the rally in the markets was somewhat too... exuberant? Here's a technical view by INO in their video "Has the S&P Index Topped Out for the Year?" Notice the long term trend lines. And even though they did not mention it (that or I missed it), notice the MACD divergence on the charts. With a trend line break downwards, S&P is likely headed for a further drop until the next support line.

Enjoy the video!