THE TRENDS: The long term trend remains up but the intermediate term outlook is a bit cloudy. As you can see on the weekly SPY chart this week again closed below the 10 week moving average but not quite below the 142 high made last April. This price action is VERY bearish. For most of the week the market rallied only to get slammed on Friday. The ONLY reason I don't feel 100% confident in declaring the intermediate term trend down is that there is one other important factor that I look at that is still pointing up instead of down.
WHAT I WOULD DO WITH LONG TERM FUNDS: My stance has not changed since last week. I would keep all of my money on the sidelines. There is plenty of time to initiate a new position when the intermediate term trend is firmly pointing up again. Have a great weekend!
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