TSP Distribution: G-fund 100%
Friday’s little pop did little to repair the damage that was done all week and did not even dent the loss we have accumulated for the month of November. This makes the second week of steep losses and I’m not convinced that downhill slide is over. There no pivot lows to talk about on any of the 3 indexes and we are still heading toward to next level of support. All of our political leaders will be off until after the Thanksgiving Holiday and then it appears Israel might be heading into another War. Did I mention European issues yet?
Taking at the look at the S&P 500 chart above there just isn’t anything to point at to give you much hope of a reversal as of the close Friday. There was a little bounce Friday but it wasn’t even enough to create a new pivot low that might indicate a reversal. The $1370 which I thought was a very critical level to hold didn’t hold up for more than 4 days before failing. The obvious next level of support is shown at $1331 but what is not shown on this chart because it would be to confusing is the 61.8% Fib Retracement level at $1345. That might just hold but I will need some proof before I consider that information to be legit. We need something to build on before we risk any capitol. I drew the CBL Re-Entry line on the chart and you can see we are at least 32 points below that level. If we can close above that level, that will also give us a pivot low to build off of and then you can at least have some hope. But right now there is just nothing unless you consider being Oversold a reason. If that is your best shot, then you do not need to be reading my blog, now do you?
Small Cap above is shown only to show you that the downtrend might actually be accelerating to the downside. Why? Price fell out of that well defined channel. Nothing to like here either.
You can read the notes on the chart above but like the other two indexes, there is nothing to like here right now.
Conclusion is very, very simple this week. If your out, stay out and please be careful bottom fishing. At least have a reason. If your in, I wish you all the best, but I just cannot see a reason to be in for the moment. Even if I had money in the L funds, I would be all G at this moment in time. Even the L-funds lose money.
Next week, I will be out of town but not completely away from the markets. If I see anything I will either Tweet and or put up a quick post here. Good luck to all next week and I hope you all enjoy your Thanksgiving Day with family and friends.
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