Sunday Update: 100% G Fund Until Further Notice

The market was pretty flat this week, until Friday when the S&P500 jumped over 1.5%, and closed above the 200 Day Moving Average (DMA) for the first time in 2016.  In the long run, getting above the 200DMA (and staying there) is critical in establishing a long term up trend.  Could Friday’s close be the beginning of a new up trend?  Not likely…

As you can see from the chart below, we are approaching the top of the channel.  This is the point where the “smart money” will sell into the current rally and drive prices back down.  We’re seeing the beginnings of that in the indictors with the Slow Stochastic already topped and rolled over, and the MACD approaching highs not seen since the last market high in November 2015.

20160313C

Take a look at this Market Watch article about the significance of this crossing of the 200DMA in both the S&P500 and the Dow Jones Industrial Average.

The guaranteed gains of the G Fund, small as they may be, are your best bet right now.

Have a great week and please SHARE..

– Jerry