THE TRENDS: Both the long term and intermediate term trends remain up. As you can see on the Weekly SPY chart the week closed higher than last week and was especially bullish on Friday. BUT, we need to be vigilant. Notice the green line drawn at the April high of 142.21 which represents the highest prices have traded this year. On Friday the market closed at 142.18.
WHAT I'M DOING WITH LONG TERM FUNDS: When the market reaches such an important resistance level, rather nasty declines can occur if enough indicators agree. I will be watching these closely next week. In my own account, I'm taking profits on 1/2 of my position and on the other half I'll move my stop up to breakeven after commissions. Have a great weekend everyone!
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