THE TRENDS: As you can see from the attached chart of the SPY this past week closed slightly lower than the previous week. This is normal market behavior, especially after the strong rally mode the market has been in since December. My expectation is that this past week will begin a string of weeks where the market declines before the market may bounce and resume it's up trend. If we do see a "normal" pullback, I would expect this bounce to occur somewhere in the 134-137 area. But it could go as low as 132.
SUGGESTION FOR 401-K: I'll reiterate what I've mentioned the past few weeks...if you've been out of the market 100% up until now, I would not commit a large percentage of overall capital at this point. If we get the expected decline I will watch the areas outlined above closely for signs of a bounce that would give a safer time to commit more funds to the market.
Have a great Easter weekend. He is risen!
No comments:
Post a Comment