Mixed signals

this market dips into the 1150's then immediately falls back into the 1140s.  I am getting all kinds of opposing signals.   the 1150's is an area of resistance plus the market has been up for a month now so its hardly prudent to buy into this, on the other hand, many technical analysis methods have not been working lately.  The market seems to even go up on bad news.  56% of the volume is from HFTs, with only slightly over 10% from retail investors/traders.   So the direction it goes is not the result of mass psychology but instead the result of algorithms programmed into computers that profit thru huge trades on minor moves.  It kinda makes me sick.

At any rate... here is a new indicator that I find quite usefull and it is pointing to longer term continued bull moves, possibly after a bit of a pullback first.   The smaller caps seem to be leading the big caps therefore this is the relative strength between the SnP vs. the Russell 2k.  As the ratio goes up the market goes up and as it goes down the market goes down.   Russell moves up faster and down faster than SnP.

This first chart is on a 60 minute basis.  I am using a 21 period linear regression curve vs. an 8 period exponential moving average of that.  The lite blue is the LRC and the yellow is the ave.  The red is the actual Relative strength number.  Right now it crossed bearish lite blue crossing below the yellow, but the red has crossed above, which usually pulls the lrc and lrc mav.  so the yellow may have changed its mind.  On the other hand, with LRCs, generally when there is a trend change, the price (or in this case the relative strength number) pulls back to the LRC ave before continuing on down.   Its a bit confusing at this juncture.

The next chart is on a daily basis.  Now this simply uses a 10 and 50 exponential moving average of the relative strength to smooth it.  You can see the market has been in a down channel since mid May, confirmed by the 10 staying below the 50.   Now, not only has the 10 crossed above the 50 but it has also broken out of the channel.   this would tell me that there is a new leg of this bull move coming soon.  I am looking for the 60min to work its way down a bit maybe 2-5 days, close my shorts then move to long unless the daily falls back into the channel and the 10/50 cross back bearish.

With this next weeks unemployment numbers hopefully the market will get out of these doldrums and do something trendlike.