THE TRENDS: Both the long and intermediate term trends remain up. However, as you can see from the image of the weekly SPY, this week closed lower than last week. It is not unusual to see at least a one or two week correction after such a strong up move. If this is a normal correction before another up leg in the market, I would expect the retracement to end somewhere in the 142 - 144 area. The 142 level is an especially strong support level as it represents the high made in April and the 10 week moving average is just below it.
WHAT I WOULD DO WITH LONG TERM FUNDS: For now I would remain in. Until the market tells me otherwise this looks like a normal bull market correction. However, I will be watching the 142 - 144 level closely over the next couple of weeks. If the market does decline into that area and then bounce, then there is a high probability of another leg up. Have a great weekend everyone.
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