PSYCHOTIC

LONG TERM TREND: As I mentioned last week the market has many of the earmarks of a long term bear market but not all. Take a look at the attached weekly chart of the SPY and let me explain. As you can see this past week was a strong week so the 110 level (our important lower "line in the sand") held. If the market is to confirm a long term bear market this level needs to be broken on a weekly closing basis. For the market to prove it is shifting back into a bull market, it MUST close above the 120-122 level (upper "line in the sand") on a weekly closing basis. So technically what we have here is a market that is range bound (between 110 - 122 with a bearish bias.



SUGGESTION FOR 401-K: Until the 122 level is broken I'm not interested in committing any long term money to the market. Have a great weekend everyone.