Sunday Update: 12 November 2017

Happy Birthday to all my Marine friends and Happy Veterans Day to all of us who have served in the armed forces!  I’m thankful to play my part and provide some peace of mind in retirement to Military Service Members, Veterans, Government Employees and Retirees.  

Short Term

Following 2 weeks of pretty volatile movement, the market seemed to stabilize while moving higher on Monday thru Wednesday.  Unfortunately, the end of the week showed a return to erratic swings.  On Thursday, the market fell about 1% before recovering most of the losses for the day.  Friday continued lower.  The short term chart does not look great.  With the MACD/Stochastic and RSI all rolling over, we could be looking at a rocky week ahead… 

Long Term

The long term C fund chart still looks very strong.  Last week was the first down week in 2 months.  A pause to digest 8 weeks worth of gains is to be expected.  There is still room to move higher in the channel or move down to the mid-level support line without raising a red flag for this rally.  

The S fund chart is a bit more concerning.  After 4 weeks of trying to push thru the 1300 level, the S fund closed near the bottom of the weekly trading range.  With the MACD/Stochastic and RSI all rolling over, the S fund may be leading the overall market lower.  This is one to watch and see if the C fund follows suit…

The I fund didn’t change much this week.  While it was a down week, it did not finish below the prior week’s low.  The I fund is still riding the trend line that began on Election Day 2016.  As long as that line holds, the I fund rally will continue…

While there is some concern in the short term, the long term charts still look very strong.  Having said that, we are still in the 5th leg up in the rally that began in 2009.  We are much closer to the top than the bottom so, STAY ALERT!

Have a great week!

Jerry