The S&P 500 had a down week, but it is obvious looking at the last two weeks, we have stalled. I hate these little grinds but as long as the overall long term uptrend stays intact, I am good with it. The volatility is still very low and is showing no signs of a empending collapse in price. DMI is fading lower but is still positive. Nothing to do here but ride it out.
The Small Cap is declining at a much steeper angle than I like. It also fired a sell warning Friday. The 50 day moving average is also merging into the same location, so I would expect sell warning two to fire next week at some point. The actual sell signal would be around $1161, so we have lot’s of room for lower price. DMI is not helping here also because it appears undecided. We are still on trend so we ride.
The International index be far is the stronget index we have at the moment. Price did take a pause this week but held it’s level very nicely. DMI is strong and volatility is falling and low. All indicators here are positive.
Bonds fired sell warning 1 and 2 in the last 7 trading days. Tuesday Bonds confimed a daily sell signal. So once again, Bonds are a sell on all 3 charts, daily, weekly, and monthly. Do not be shocked if by the end of next week, Bonds once again is a buy because everything here is in a very tight range. Taking buy signals using daily charts for your retirement account is nerve racking. So once again, use this information as heads up that we could be seeing changes in the market, but use the slow moving monthly charts to make your moves.
Conclusion: It was a give back week but nothing for us really changed here. We also didn’t get any new information. The only scary profile we have is the Small Cap and only because the pull back is a steep on the decline. We ride our setup.
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