Market Position:
Short-term: Neutral
Medium Term: Bullish
Long Term: Bearish

SPX remains firmly bullish as RSI breaks into overbought levels above 70 (where it can remain while an uptend continues). Both the DOW and Transports are in an uptrend (however the DOW has breached its 2009 high but the Transports have not). Price relative of financials has weakened as other sectors (paricularly healthcare and utilities) take up leadership. This is a bit of a concern and a potential early sign of sector rotation into defensives. Consumer Discretionaries took a hit on Friday as Staples bounced.

Nasdaq is showing signs of weakeness; its price relative to SPX is waning, its advance-decline line backed off from overbought resistance, and the steepness of its short-term uptrend slope begs for sideways action. Stocks above their 50-day moving average have bumped up against overbought resistance.
Strategy: enter new longs (and add to existing long positions) on a pullback. Raise stops and take partial profits on winners.