We are in another European news cycle with their banking systems and even though I hate listening to news, I like to know what is affecting the markets once I had read my charts. Not sure what the outcome will be, but eventually as our own markets continue to improve, it will over ride the European problems.
The S&P 500 / C-fund is under a close watch but a single warning has been fired yet. Tomorrow if the downward pressure continues should and will fire the first. My Count Back Line system or CBL, will be the first thing that fired off. Once that is fired, I put myself on alert for a possible move out of the index. You can see by the chart above, current price is $1548. CBL is $1541, and the Moving Average is $1510. That $1510 is going to continue to squeeze up, so if we get that downward pressure, we are going to get popped out. We will need some up days soon.
The Small Cap is under the same watch as the S&P and everything is safe at the moment. I think the CBL will fall tomorrow if we have another down day.
The International / I-fund is under a little more stress than the other two because everything is squeezing together into one spot. This index has been a mess since February 4th and doesn’t look like anytime soon it going to be fixed. Yes last weekend write up I thought that we would get a move Monday, but it didn’t confirm, so we didn’t make a move. Tomorrow will be a very interesting day for this index.
Looks like everyone is running to the safety of bonds. Last weekend I basically said stay away but things do change and that is why we read price instead of news. If the timing all works right, we could be bailing from C,S, and for some, the I, directly into the Bond funds. Tomorrow we could cross the 50 day moving average to the upside, the CBL, and the downtrend in one day. Then Thursday would be the confirmation day. So we are watching bonds, not to stay out, but to enter.
I’m currently still 100% invested in the stock market via 50%-C and 50%-S. That will not change until all signals have been fired and confirmed via price movement. No news or rumor will make me move.
Click Here if you want to see the futures for the world markets. That will give you and idea where we might be trading first thing in the morning. Right now it looks like another down day.
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