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The bulls were able to hold the bears down this past week with regards to the S&P 500. The S&P 500 ended up finishing up .76% for the week when the closing bell was struck on Friday afternoon. It wasn’t a great week for the bulls as they were not able to surpass the previous weeks highs, but given that they stopped the bears from triggering the sell signal, they didn’t do too bad. The S&P 500 is close to all-time highs and if it breaks the highs, we will want to see a strong break that cast doubt in the bear’s hearts.
The Bear ‘o’ Meter continues to remain positive, or risk on for the longer-term. The monthly signals all stayed positive for the month and the weekly ones remained positive as well. Of course, the S&P 500 could be topping right now, but as it remains right now, the bulls are in charge as the longer-term trend and momentum is positive.
The swing indexes we like are the following: Extended Treasury / Australia / EAFE Value / Global Wind Energy / Healthcare Sector / Transportation / Natural Gas / US Aerospace and Defense
We did not get the buy trigger for the International Preferred Index. It looked promising early in the week, but it just couldn’t make it. So, no new purchases were made. The big winner for the week was Healthcare. It was up 2.01% for the week. The Transportation Index didn’t do bad either, it was up 1.28% for the week. Commodities were ‘ehhh…’ They were basically flat or slightly down.
I don’t know what to say about the international Indexes except ugh. They just can’t seem to make progress. Each time they have a good week, they get slapped back down losing progress. The stops are a little lower, but if we can’t start to make progress soon, I may pull the trigger and hit the sell button in order to allocate towards a performing asset. The two international indexes are Australia and the EAFE Value Index.
The bulls have a great chance to push the S&P 500 to all-time highs this week…they are so close. We will be watching the international indexes to see if they start to strengthen and give hope to the bulls or if they continue to falter. There are no new buy signals this week, so we won’t be looking to allocate any additional capital.
The Education/Gratitude Book Club
This month’s book is “Self-Discipline: How to Develop the Mindset, Mental Toughness and Self-Discipline of a U.S. Navy Seal,” by Dominic Mann. Looking forward to reading it and an exciting week in the market! Have a great week!
Adam Straseske, CMT