WHAT I WOULD DO IN 401-K: Last week I mentioned that I would not commit more than 50% of my available funds to the market and I continue to take that stance. Here is why...take a look at the image below. It is not the weekly SPY chart that I typically post but rather a Quarterly chart of the SPY. Each bar represents 3 months of data (jan - mar, apr - june, july - sept, oct - dec) and the price history goes back to 1999. Notice the two brown lines at the top of the chart. These levels represent the end of the last two major bull markets. As you can see we are very close to those levels now. The bottom line is that even though a strong bull market exists, the probabilities favor at minimum, a strong correction once those levels are reached. Over the next couple of weeks I'll be watching very closely for confirmation that both the intermediate and long term trends may be shifting to the down side. Have a great weekend!
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