Strong Week

THE TRENDS: The long term trend is mildly bullish while the intermediate term trend is strongly up. As you can see from the chart this week was strong compared to the previous week and for the 2nd consecutive week closed above 137.18, which is a formidable resistance area.



SUGGESTION FOR 401-K: If I had been out of the market 100% up until now I would start "dipping my toes" and commit maybe 25 - 33% of my account into mutual funds. The only reason I wouldn't go 100% yet is that typically, at such an important resistance level, we see at least a mild market correction. If a market correction does happen, and it becomes a "larger than normal" correction, then the loss sustained won't be so large. If the market has a shallow retracement followed by strength, then I would commit the rest of my account to mutual funds.

If you've been looking for an opportunity to get back into the market, check your email each day during the next couple of weeks. If and when we get a shallow retracement followed by strength, I will update the blog that night after the close, which will give you the opportunity to get back into the market instead of waiting for the end of week update. Have a great weekend!