Yes the S&P 500 fired a warning today because the short term trend was busted when price closed below that line. But one day does not destroy a trend, but a second close below is very damaging to any indicator. So we wait to see what happens tomorrow with the short term trend. Remember my CBL and 50 day moving is still safe. Weekly chart barley flinched, so I stay the course.
Small Cap actually had some real damage done today because my CBL was broken. If this was a stock, I’m suppose to sell it tomorrow no matter what. But I have different for funds/indexes and I will need price to follow through to the downside tomorrow and close below the 50 day moving average. So I will stay the course and wait and see what happens here the next few trading days. Weekly chart is also still good.
No significant change in either direction is noted here and still on a close watch as is the Small Cap.
Bonds moved up a bit, but no real change here either. So getting into Bonds will also have to wait.
Conclusion: The international index has been on the watch for a few trading days and now you can add the Small Cap. The S&P 500 also fired a minor warning but my major indicators are still good. Days like today suck, but nothing goes up forever.
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