THE TRENDS: On Friday the market gave an intermediate sell signal as the market closed below the 137.50 level that I talked about last week. IMPORTANT: It also did so on higher volume than the previous week. This suggests a high probability that over the next several weeks the market will continue to decline, potentially to just below the 130 level, which represents the October, 2011 high.
WHAT I'M DOING IN MY 401K: I am moving all of my money into cash. On occasion the kind of action we saw last week will just be a "head fake" where the market turns around and heads back up. If this happens, I'll get back in but the probabilities suggest a further move down. Better safe than sorry.
Have a great weekend everyone!
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