Sunday Update and ALERT: 50% C Fund, 50% G Fund
Friday was a very big day for the market. The C fund was up 2.5%, the S fund was up over 3%, and the I fund was the lagger with a 1.75% gain. Huge Day! Most importantly, the C fund broke out of the consolidation area on big volume (See the 6 month chart below).
This is the beginning of a relief rally. There’s no way to know how high the market will get before rolling over but, we should be able to squeeze out a few percent. There is some significant resistance when S&P gets to 2000 which is also the 50DMA right now. This should be the first test of this rally. We could easily get there this week so, stay tuned!
The 2 year chart below gives a broader perspective. The bigger picture is not looking good but, there is room for some gains in the short run.
Please post questions to comments and SHARE.