Sunday Update and ALERT: 25% C / 25% S / 50% G Until Further Notice
What a difference a week can make! As we discussed last week, there were lots of positives in the short term chart of the C fund. This week supported those assertions as the price chart moved higher, with a big pop on Friday of over 1.5%. The big headwind is still the 2135 level but, all indications point to that price level being taken out shortly.
Both the short and long term charts indicate that we have cleared significant consolidation and prices should be moving higher. This is a great time to dip a toe back into the stock funds from a technical perspective. The biggest reason for this that downside risk can easily be managed.
IF this breakout fails, my line in the sand will be a closing on a weekly chart below last week’s intra-week lows (approximately 2075 on the S&P and the 50 DMA). From today’s price of 2130, that’s about a 2.5% downside risk. Based on what I see now, when the S&P gets above 2150, I’ll be back in the stock funds 100%.
The C and S funds have both cleared recent consolidation levels and the technical indicators are looking very strong. The I fund is still struggling however. Please see the short and long term charts below and post questions to comments.
Have a great week!