Price structure on the S&P 500 still looks good to me. Last week was a down week but prices can’t go up everyday, so last week looked to me as profit taking or price consolidation. No warnings on the S&P, so the C fund is just a watch and wait.
The Small Cap since March have been consolidating and I thought we were done for awhile. This week was hard to ride down 2 plus percent, but ride it down I did. Warning one was fired. at the close Thursday. What really bothered me was that price closed below the last pivot low. Normally that means we have a trend change in progress. It is not a done deal yet and only time will tell if a trend is changing. Warning 2 could be fired really quickly next week because price is just on top the 50 day moving average.
The International is turning into a disaster here. 2 warnings are active. The uptrend line is the last line of hope that the I-fund well not fire a sell. If that happens, price will already be below the monthly sell level which doesn’t happen often. Got to watch this index very closely this week.
Bonds had a good week this week while stocks were getting pounded. This is normal because that is where they run for safety. Bonds is still making lower highs and lower lows, so I would be careful running to quickly to bonds. Going to be an interesting week next week watching to see which side wins the battle. Stocks or bonds.
Conclusion. If you are in the I-fund, watch closely this week for a sell signal. I’m hoping for a nice pop back up, back I can’t predict the future. C is ok. S is also on a close watch, but still has room to fall. Bonds, also a watch.
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