The S&P 500 last week totally puked and broke to the downside out of the wedge. Not a good sign for the immediate future of the stockmarket. We closed below the 50 ma and the monthly level. We also broke below the last major pivot low. So as of now, the S&P 500 or C-fund is a hold with a major look out below warning.
The Small Cap puje 5 straight days in what has to be one of the worst weeks of the year. Lower pivot point broke, ma broke, and monthly broke. This now a major hold.
The International followed the same trend as the other indexes in that the last pivot low was broken, 50 ma broken, wedge broken, and now it just looks like shit. There is nothing to like on all 3 major indexes here and I fear more of the same next week.
Bonds is the only index that showed life last week and that is because all the money was running to safety. Nothing is a buy here yet, but another week like last week and that might change.
Conclusion: If you’re out, you’re lucky and it might be a great time to sniff. Personally with all the levels broken last week, we could be in for another nasty ride next week. I’m on the brink of a 10% loss for the year. Who would have thought that.
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