Sunday Update and Alert: 40% C Fund / 40% S Fund / 20% I Fund

The rally in the stock funds continued this week with the S and I funds doing very well, and the C fund forming a horizontal consolidation.  The most significant technical change this week was in the I fund.  It’s been over a year since the I fund was above it’s 50 Week Moving Average (WMA).  This week it jumped above it and put the I fund back in the game.  I will execute an Inter-Fund Transfer (IFT) on Monday swapping out the 20% G for 20% I.  At that point I will be 100% in the stock funds.

The C and S funds are looking pretty over bought in the short run and the S fund is bumping up against some significant resistance.  It wouldn’t surprise me to see a bit of a pull back over the next few weeks but, in my opinion, the opportunity potential outweighs the current downside risk.

Short Term

Not a very exciting week for the C fund benchmark.  The S&P500 stayed in a tight horizontal consolidation but the technical indicators are rolling over.  This is a very good sign.

20160731Cfund6Mo Daily

Long Term

The S fund has continued its upward progress but is now bumping up against some significant resistance at the 90 level.  We need to see the S fund break thru 90 and eventually make new heights above 95.  This will likely not happen without an intervening consolidation of some sort.

The I fund broke up thru its 50WMA; a great sign.  That breakout coming off of the long term double bottom pattern is a great sign for the I fund going forward.

20160731SFund2YrWeekly

20160731Ifund2YrWeekly

Have a great week!  Please post questions to comments and SHARE.

Jerry