What the Bulls Gain, the Bears Taketh

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The S&P 500 finished the week down 4.6%. What the bulls gained the prior week, the bears taketh away. Right now, the S&P 500 is sitting on support in which it has sat two times prior just recently. Monday was a great open for the S&P 500, but it could not close on a strong note. So what happens when the market is supposed to do something and it can’t…it does the opposite!

Last week’s price action did not change the structure of the S&P 500 as far as being in a trading range, but if the longer-term indicators were to close on Friday, we would have gotten a bear market signal. This puts the S&P 500 in treacherous times since it continues to remain so close to these bearish readings.

We did not hit any stops in the portfolio last week, but we have certainly gotten closer in some of them. And we did get a buy trigger last week on Monday, but by the afternoon I really didn’t like how the S&P 500 was acting so we didn’t take action on it and therefore no new positions were added. Of the current positions, the position that is holding up well is the US Dollar. We don’t know if it will continue, but it has held up well compared to US equities. Another consideration are the precious metals commodities…we have a close eye on them.

There are no buy signals this week to consider. We will be monitoring the positions closely and surely take action if need be to stay within our risk parameters. It’s NOT over for the bulls just yetW, but we are getting close to breaking to the downside. This makes for an interesting market! Have a great week!

Adam Straseske, CMT

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