BEARISH WEEK

THE TRENDS:  The long term trend remains up.  So does the intermediate term trend although there are some danger signs.  When looking at the weekly SPY chart you'll notice that prices this week traded higher earlier in the week only to close lower than the previous week and lower than where it opened on Monday.  Based solely on price action this is very bearish.  However, one of the other most important factors I use to confirm an intermediate term trend change is still very bullish. 

WHAT I WOULD TO LONG TERM:  Ideally I like to see all factors pointing up in order to stay 100% invested.  Since that is not the case I would likely take off 50% or so of my position and wait to see what happens next week.  The 10 week and 40 week averages remain very powerful support levels.  If the intermediate trend flips down I'm 100% out.  If it reverses back to the upside, I get back in 100%.  That is the money management strategy I use.  What you do of course is up to you.  Have a great weekend.