THE TRENDS: Both the long term and intermediate term trends remain up. Last week closed up very strongly (see weekly SPY chart) well above the previous all time highs; but it did so on rather weak volume. Whenever this happens it sets up the potential for a quick retreat back below all time highs. So while the price action is very bullish, it was not confirmed by volume.
WHAT I WOULD TO WITH LONG TERM FUNDS: As I've stated in previous updates I would have 50% of my portfolio in the market and only commit more when the market convinces me it's moving higher. I might commit a little more at this point but certainly not 100% until the volume analysis convinces me that the bulls are fully in control. Have a great weekend!
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