Pause or Pivot?

S.T.A.Y.™ current position for Active portion of portfolio:  BUY – S.T.A.Y. Plus™ 

Last week had about a 2% range between highs and lows and closed with a small gain offsetting the small loss from the previous week. Technically, the market continues in an uptrend, however, it still appears to be either “catching its breath” with a temporary pause, or a possible pivot point towards a correction of the aggressive rally that has transpired between last November and now.  If so, we are ready to take action if needed. It has taken two years for the S&P500 to exceed that “line in the sand”.  This is a bullish sign and we hope that this continues and is able to maintain the upward trend. 

It should be noted that our current position for the longer term shows as a BUY this week, although we have been in a BUY position in the short term since mid-December of last year.  We are intending to merge our long-term signal and short-term signal. Clients who are making changes in their 401k accounts can act accordingly just knowing that the shifts from BUY to SELL may be happening slightly more often than pre-2022 signals.

By way of review, you can see that we have included two different charts. One is a "Weekly" chart of the S&P 500 index (AKA "the market"), and the other is a "Monthly" chart of the S&P 500 index. Each bar represents the aggregation of either a week or a month's activity. The top of the red bars represent the opening price and the bottom of the red bar represents the closing price of the market in that corresponding time frame. The green bars are just the opposite; top is the closing price, and bottom is the opening price. The wicks on the top and bottom represent any trading in that period that is outside of the opening and closing bounds. 

We include these charts so that you can see what the market is doing with some greater context. Feel free to hit us up with any questions on how to read these charts.

​Weekly S&P 500 Chart (with all-time hi shown)

Monthly S&P 500 Chart (with all-time hi shown)