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

Nature loves symmetry and we’re seeing that played out in the yearly chart of the S&P500.  Take a look at the chart below.  On the price chart, the “W” bottom formation that we saw back in Aug/Sep 2015 looks a lot like the “W” bottom we’re seeing now.  The Slow Stochastic and MACD set up look just like the first week of October 2015.  There are no guarantees here but, if we extrapolate the chart out a bit, we can see the price hitting 2050 by mid March to maintain the symmetry.

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2050 on the S&P500 is probably the best case scenario going forward.  To get there, the market needs to break thru some significant resistance at 1950 (the 50DMA) and 2025 (the 200DMA). Getting above 2050 will be very tough.  Take a look at the 2 year chart below.  We are in the midst of a confirmed down trend with a fairly wide channel.  As long as the technical indicators hold up, we can look for the channel to act as both a floor and a ceiling.  Again, this is a BEST CASE scenario.  When the market starts heading south, it usually does so in a hurry.  The channel is just a guide.

 

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As long as the technical indicators hang in there, I’ll stay 50%C/50%G.  If/When the indicators roll over, I’m back to 100%G.  Stay tuned and please SHARE…

–  Jerry