Current position for Active portion of portfolio: SELL – S.T.A.Y. Plus™
Market Avoids A Fourth Week of Net Negative
Last week the market finished with an energetic rally-- the first positive momentum in nearly 4 weeks. However, it has not erased the downward momentum from the prior 3 weeks, not to mention the long-term down trend that it's still attempting to escape. 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.
In order to better understand the weekly candlestick charts, it may be helpful to notice that each week is represented by a single "candlestick". The red candlesticks denote weeks that ended trading lower than they started. The top of a red candlestick is where the week opened. The bottom is where it closed. As you might guess, the green candlesticks represent weeks where the market closed higher than where it opened. The bottom of the green candlestick is where the market opened, and the top is where it closed. The "wicks" on the candlesticks represent intraweek highs & lows.
Weekly Chart of the Standard & Poors 500 Index (S&P 500 AKA "The Market")