Another update on where we stand as of Wednesday, 9/2612

Today we had another gut wrenching day in the Stock Market and I will agree that these moves are not fun to watch. What makes it worse is that you can see dollars leaving your account. In all fairness, if you have been riding this wave all along, then it’s money you never really had. You should still be up, like me, 15.37% for the year. Yes, 18% sounds better, but like I have said over and over and over again, you should never try to call tops or bottoms, but get the meat out of the middle. So where do we stand today after the close? The S&P 500 and/or C-fund will be my first chart. The notes are on the chart and you should really look and compare the past with the present and I think you will agree that we are close to bailing, but we have time for this current down thrust to reverse.

The next chart below is the Small Cap and/or S-fund. Once again I zoomed out so we can compare and you have to read the notes. The Small Cap is in trouble and needs to reverse quickly or I will be closing my position here. We still have time, but I fear with one or two more down days there will be to much damage to stay in.

Last is the International Index and/or I –fund. No warnings have been fired here and it closely resembles the S&P. Please read the notes in the chart.

In conclusion, the last 8 trading days have not been fun to watch, but unless you just made the decision to get in the market 2 weeks ago, there is not much to whine about. You can’t listen to news, it will drive you absolutely insane. Since this started 8 days ago, I have refused to listen to or read anything on the markets. I know I make poor decisions when I do. I will watch price movement and bail when price says to bail. No one knows what tomorrow will bring, so I make no predictions. I do know that if my charts say to stay in, I stay, and if the say bail, I will bail.

One more thing to note, do you know what happens when the market is Overbought? It normally goes down for awhile to consolidate price. The reverse happens when it is oversold. Well last week or so on 9/13 and 9/14 we were Overbought, so in my mind, this market is doing exactly what it suppose to be doing, consolidating. As far as being Oversold since this pullback started, we are not even close. We need to reach $1393 or lower in the S&P 500 before we be considered Oversold. We are smack in middle and I hope now that we will trade sideways for a few trading days and then start back up. Once again, this not a prediction, just an observation of price that has already passed.

I like you are hoping for a better tomorrow.