Current position for Active portion of portfolio: SELL – S.T.A.Y. Plus™
Has the bear market gone into hibernation?
Last week the market continued with its break through of a long-term downtrend line to the upside. The question is, will this be a successful breakout that leads to a continued uptrend or a failed breakout that leads to the continuation of the long-established downtrend? Only time will tell if it is able to hold above this 12-month long downtrend line. The rules in drawing a trendline is that it has to start with the high point and connect to at least one additional lower high. If it works that a downtrend is supported by more than one lower high it just makes it a more established downtrend line.
Take special note of the Market Quiz which deals with an example of a downtrend line that was penetrated through to the upside. We will keep an eye on this situation and keep you posted.
Until we are sure that the bear has gone into hibernation, we will S.T.A.Y. the course.
Check out the updated charts below and continue scrolling down to review reports from previous weeks.