THE TRENDS: Both the long term and intermediate term trends remain up although the intermediate term trend is undergoing what I believe to be a "normal" market retracement. Last week I mentioned that if another up leg is in the offing, the correction should stop in the 142-144 area. This week the market closed down for the 2nd straight week but closed at 143.97. Next week will tell us a lot about the health of the intermediate trend. If we get a weekly close below 142, there is a very high probability of a move lower, which would flip the intermediate term trend down.
WHAT I WOULD DO WITH LONG TERM FUNDS: If I were in mutual funds since the last buy signal, I would stay in as the trends are still up. For self directed IRA's I would stay in an SPY position or call options on the SPY but might sell off 1/2 of my position just to take profits off the table. Have a great weekend everyone.
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