WHAT TIME IS IT?

THE TRENDS: As you can see from the attached chart the market declined for the second consecutive week, closing at 137.14 which is just below the significant resistance level representing the high made last May at 137.18. The correction over the last two weeks has been 3.5%. As I mentioned last week, after such an extended up move it is not abnormal to see these types of corrections in a healthy bull market. Both the intermediate and long term trends remain up.



SUGGESTION FOR 401K: I should have mentioned last week that those who had been fully invested in the stock market since the last signal at 115.71 may want to move some of their money into cash since the probability was high that over the next several weeks we may see a market correction. I still believe that we may be in for potentially another couple of down weeks before another potential leg up. So you may still consider moving some of your money into cash. Of course, I will keep an eye out for signs that this correction may actually turn into an intermediate term down trend in which case you would definitely want to move the majority of your money into cash.

Have a great weekend!