New Allocation: 100% G Fund
This SHOULD be the beginning of a significant correction. How significant is really the big question. Best case scenario is a 3 step decline down to the 50DMA (blue line). If we get support at the 50DMA, things will be looking great going forward. If we do not get support at the 50DMA, we are likely to retest the December 2018 lows. More on that if/when it happens… It’s possible that we could get support at the 200DMA (red line). While possible, it is very unlikely since the S fund has already closed below its 200DMA. The S fund tends to lead the C fund.
I will look to get back into the stock funds when the C fund hits its 50DMA (2650+/-), AND RSI and Wm%R have turned up after bottoming.
* This analysis fails if we get a close above the resistance zone on the C fund chart. *
Don’t forget to get your reallocation completed by 1200PM EST to get the 03/07/2019 closing price. As always, please post questions to comments…