Sunday Update: 18 December 2016

Sunday Update: 34% C Fund, 33% S Fund, 33% I Fund.

It was a consolidation week with the market chugging along just how we want to see it.  We’ve had some HUGE gains since the election and the market can’t go up every day;  it needs to breath…

Short Term

In the short term, the C fund had a tight consolidation week and could be gearing up for the next move up.  That being said, the C fund is definitely way over-bought.  Take a look at the second chart below.  It shows how, when the MACD gets above 80, the price chart is close to a short term top.  With these 2 charts in mind, I will be watching next week very closely.  A close below 2250 will cause me to seriously consider coming out of the stock funds a bit.

Long Term

In the long term, the market is taking a little breather and appears ready to continue higher.  The C fund finished the week almost exactly where it finished last week.  I would have preferred to see it finish in the upper half of the weekly price range but, as long as each weekly low is higher than the week before, we’re good to go.

The S fund consolidated a bit more than the C fund but, as long as we see higher highs and higher lows, we’re good to go.

The I fund also consolidated a bit on its way to the upper channel line.  It will be interesting to see if the I fund can join the C and S funds in the current rally.  The I would have to pull above the upper channel line, and stay above it, to confirm a trend change.

Have a great week!  Please post questions to comments.

Jerry