It was an eventful, but flat week for the S&P 500. The short trading week ended with the S&P 500 being down a messily .22%. When the market opened on Tuesday morning, it looked like the bears were going to run away with it for the week, but they simply could not hold on. They were failing by Wednesday and the rest of the week was neutral to up.
January is already coming to a close…I know it is a cliché, but where is the time going? Every. Single. Day is a blessing and they continue to fly by without discrimination. OK…back on point…we will get the monthly readings by the close of this week and the bulls must do some work for the longer-term momentum to turn positive. Until the momentum switches back, we are still taking a more conservative stance.
We did get involved in the emerging markets this past week. They had been declining for many months and more recently turned sideways for several months. Once markets turn sideways for a few months after a trend in either direction, it starts to put probability evenly split between the start of a trend in the opposite direction or continued direction. We had several strong weeks leading to a breakout to the upside and with that many bullish weeks, we are looking for at least another leg to the upside.
The S&P 500 is once again going into the weekend at resistance. It is basically in the same place it closed the prior week. We are looking forward to this week to see if the bulls shoot the S&P 500 higher or if we will see some selling pressure from the bears. Have a great week!
Adam Straseske, CMT
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PPS – Thank you for those that responded to the question with regards to future events and interests! Very grateful!