Sunday Update: 50%C fund / 50%G Fund Until Further Notice

As we talked about last Sunday, there is a best case and a worst case scenario.  It looks like the best case scenario is playing out so far…  This week the market drifted lower and consolidated at the 50DMA.  Volume was low throughout the week (see the chart below).  Low volume during a consolidation is a good thing.  Big money isn’t dumping stocks, they’re just taking a breather.

The short term chart of the C fund looks pretty good.  Friday finished at the highs for the day and bounced off of the 50DMA.  It would have been more convincing if the volume had been bigger on the bounce off of the 50 DMA however.

20160507Cfund6monthdaily

 

Long Term

The long term picture is worse than the short term.  The long term stock fund charts don’t look great.  All are rolling over, with the S and I funds rolling over at the 50 Week Moving Average (WMA).  Pay particular attention to the I fund weekly chart.  It was a tough week for the I fund.  Another down week and the I fund could definitely lead the overall market lower.

20160507Ifund2yrWeekly

20160507Sfund2yrWeekly

20160507Cfund2yrWeekly

Have a great week!  Please post questions to comments and SHARE!

Jerry