With 7 trading days remaining in the month, I thought long and hard about posting this Alert! We have been talking about significant resistance at/near the 2900 level on the S&P500 (C fund) for the past several weeks. As you can see in the chart below, the price got just below that level and hit resistance at the 50DMA before rolling over. Given the myriad of economic uncertainty out there, I am happy to lock in my small gains since the last Alert and wait for an entry point in May.
IF the market consolidates sideways from here, I would consider getting back into the stock funds on support above the 50DMA. IF it continues lower, I will look for a bottoming pattern and/or a strong close above the 10DMA before moving back to the stock funds.
As of today’s close, the market is telling us to be EXTREMELY cautious! No crystal ball here… If it keeps going lower, we will look closely at volume, technical indicators, investor sentiment and capitulation as signs of an approaching bottom. The next obvious resistance level is the prior low at 2200…