The S&P 500 daily is safe but it also looks like it has entered the pull back zone. The first level it needs to hold is the red BLC line which just happens to be on the last pivot low. That level is $2058. Next week this time I also expect the weekly chart to fire a buy. That will make all 3 charts a buy.
The Small Cap appears to be ready to start moving. Price is above the 50 day ma and if you look closely, it is now above the current monthly ma. Next I would like to see price close above the $1066 level so that trend I drew with the purple line continues. I’ll have more on the Small Cap in the conclusion.
The International is really starting to concern me. It just can’t seem to take out that first down trend line and now price is threatening the 50 day ma. So Monday, we could a sell warning and a sell confirmation fairly quickly. Price needs to start moving up soon.
Bonds have really been taking it on the chin the last 6 or 7 trading days. Friday it fired and sell signal and unless it backs the yellow box area Monday by 11:30, it’s a confirmed sell. The very large wedge that we have been watching for over a month has finally broken to the downside, so this could spell trouble for bonds again. I will be watching this and the International closely Monday and all week.
Conclusion. The C and S look fine for now as long as their trends continue. I would think at this point, the S has the most room to run higher because it has been lagging. I’m currently 100% L-2040 and that means I have about 27% invested in the I and F. If those 2 funds collapse next week, I will likely take that portion of my funds and shift it to the S-fund.
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