*ALERT*: 24 April 2017 (Follow Up)

New Allocations: 34% C Fund, 33% S Fund, 33% I Fund.

I like to send alerts based on daily or weekly closing prices but, in this case, there was no value in waiting until the close of the day to send the alert.  The rally was very strong all morning, on all major stock indexes around the world.  This is getting in as close to the bottom as possible, for maximum gains, with minimum identified risk.

The market jumped on Monday following the French primary elections.  While this news may have been the spark, the technical set up was excellent.

• The price chart had traced out a double bottom pattern, was butting up against the down trend line AND the 50DMA.
•  We were in a very shallow correction for 6 weeks, where odds favor a continuation of the longer trend.
• Monday’s gap up thru the 50DMA was a “Breakout Gap”, the beginning of a new rally.  In early March we saw an “Exhaustion Gap”, when the S&P500 hit 2400, and marked the end of the U.S. election rally.

I’ll get into Gaps a little deeper on the Sunday Update this weekend.

Please post questions to comments and share…

Jerry