WHAT A WEEK

LONG TERM TREND: This past week was a very bullish week as you can see from the attached weekly SPY chart. At this juncture the market is slightly bullish on a long term basis. The only reason that I am not fully bullish is that we are fast approaching a major resistance level at 137.18. This is the highest price the SPY reached last May and hasn't been able to breach since.



SUGGESTION FOR 401-K: There is a high probability the market will test the 137.18 level in the ensuing weeks. Until then I'm staying in the market. One of two things will happen if and when that level is tested. Either there will be a breakout above that level which would turn us very bullish on a long term basis or the market will form a double top which should shift back until a slightly bearish mode.

Within the next two weeks I'll start incorporating the timing model that I referred to in last week's post. I'll share historical signals and start providing real time signals as they occur. Until then, have a great week!