Don’t run yet

Well if you listened to all the doomsayers today, the US Stock market was doomed. Well after watching it today, I once again have to say, no one can predict what the market will do, so I tune out most of the news and watch my charts. I play by the rules that I have learned and make my decisions on what I see and not hear.

After today’s big drop from 9:30 to noon, some were saying I need a roof to jump off of, or the sky is falling. By the end of the day, we had a very small gain on the SPY. So much for the sky falling, today. After the big swing in one day, it did nothing on the weekly chart and once again proves that the weekly charts filter all the noise.

Where do we stand after 2 days of trading this week? We are in the same position that we were in after last Friday’s close. I remain cautious and will monitor the movement of the SPY and DWCPF.

The SPY closed below the 50 week MA but the weekly trading bar is still just above the 50ma. RSI is still below 50, which still isn’t good. But here is the good news, the SPY has bounced off the 104.2 resistant point 3 times now and that is reassuring. We still have 3 trading days left this week and once again, I say it is to early to make a move out of the C-fund, but I will not be opening or buying any stocks for long positions.

The small caps have weakened a bit more but is still holding on. Like the SPY, it is to early to be bailing out of the S-Fund or small cap.