THE TRENDS: Both the long term and intermediate term trends remain up. But the weekly price action has me a bit concerned. Take a look at the weekly SPY chart. For the third consecutive week prices closed on Friday very near where they opened on Monday. There is a lot of indecision in the market. This may be due to the fact that we're very near a major holiday. However, one of the most important market breadth indicators I look at still points to a very bullish market and prices remain above both of the important moving averages.
WHAT I WOULD DO LONG TERM: Nothing has changed since last week. Typically when we encounter the type of indecisive price action I take a certain percentage off the table and get 100% invested again if the market makes a more decisive move up. Depending on your risk tolerance you may choose to do the same or just stay in 100% until an intermediate term sell signal is given. HAVE A VERY MERRY CHRISTMAS!
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