THE TRENDS: I could literally repeat what I said last week. While the long term trend remains up the intermediate term trend has stalled. This week closed only slightly higher than last week. Also, as you can see in the image below, the weekly bar is once again gray. In my opinion all it would take to start a significant intermediate term correction is a weekly close (red bar) beneath the 10 week moving average (cyan line).
WHAT I WOULD DO LONG TERM: Because the long term trend remains intact I would keep 50% of my available funds in the market but would not establish any new positions at this time. I'll also be watching the weekly price action closely over the ensuing weeks. If an intermediate term down trend is signaled I would move 100% into cash. Have a great weekend...I'm off ice fishing with my son. Life is good!
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