THE TRENDS: The long term trend is up and the intermediate term trend is up from 115.71. As you can see from the attached image, last week started out selling off the first couple of days but then rallied strongly later in the week to close slightly higher than the previous week. This is bullish market behavior. In bull markets it is very typical to have sell days early in the week only to have the week finish strong. The opposite is true of bear markets. Still, the market is only slightly higher than the major resistance level of 137.18. Anything can happen at these levels, so I'm watching very closely for the events which may signal a potential change in intermediate term trend.
SUGGESTION FOR 401-K: If you've been in the market since my last signal I would stay in. But if you've been out 100%, now is not quite the time to throw in 100%. There is some specific price action that I would like to see in order to do that. I will continue to watch and let you know in the coming weeks when and if that happens.
In the next few weeks I'll be introducing some trading ideas that I will be using to trade funds outside of 401-K's where one typically has more flexibility in terms of what instruments can be invested in. Until then, have a great weekend everyone.
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