Market Momentum Lacking
Current position for Active portion of portfolio: SELL – S.T.A.Y. Plus™
Upside trend break remains soft…..Downtrend continues.
Last week the market was down slightly, losing some more of its recent gains. It’s looking more probable that Feb 2nd marked an intermediate top but only time will tell. The market is attempting to push upward but doesn’t appear to have to strength needed to overcome the resistance. However, it is still slightly above the long-term downtrend line to the upside. If this is going to be a successful breakout of the downtrend, it will need to receive an injection of buying enthusiasm, otherwise the breakout will fail. 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. We will remain invested inverse to the market until market conditions dictate otherwise. We will keep an eye on this situation and keep you posted.
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