So looking at the charts for the last 2 to 3 weeks it is all about the S&P 500. It is absolutely on fire and practically on a solo march to higher prices. The only difference this week is that the NASDAQ followed or lead the S&P 500. The International and Dow Jones30 also appear to moving up also. But that Small Cap index is almost scary in comparison.
Thursday and Friday the S&P 500 made moves that almost appeared as if big money was chasing uphill. The moves were impressive. Price is now well above the currently monthly buy level and it appears by the end of the month, the C-fund will be a buy.
So the Small Cap index has me totally confused when you look at the weak price movement compared to all the other indexes. What makes this even worse, by the letter of technical chart reading, the Small Cap is forming a bear flag. Not all bear flags breakdown, but 75% of them do. This will be interesting to watch. The Small Cap has not fired a buy signal yet.
The International index also had two very good days last week. Looks like the short term downtrend will be broken next week, so all is good.
Bonds? No change. We are still churning.
So it does make me sick that I did not follow the daily buy signal on October 7th and 8th, that you can see here. But that’s a decision we all make and I wanted to stick with the monthly moves. I will get back in Friday October 30th as long as the S&P 500 or C-fund is still a buy monthly.
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