The S&P 500 started the week off great! But then…but then the selling ensued. The S&P 500 ended the week with a sell signal at resistance. Don’t know if the selling will continue, but there is an obvious bear case coming into the week.
The bear ‘o’ meter slid slighter signaling more risk in the US markets. It is still bullish overall, but it is showing weakness in the US equities markets. The weakness is due to market breadth decreasing (less and less stocks rising with the index) while the S&P 500 continued higher.
This week we are looking to take risk off the table given the opportunity. The international holdings have just not been up to snuff. They seemed to be bouncing from support, but have not triggered a sell signal as of last week. If they break support, we will certainly be stopped out. We will also take risk off the table if we can get a little more upside on certain positions. If the upside target is hit, it makes mathematical sense.
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. It could be read in about an hour. This week should be exciting in the markets due to starting the week at resistance with a sell signal! Have a great week, we’ll be watching closely!
Adam Straseske, CMT
PS – There is a new video format! If you like it…please subscribe to the YouTube Channel and let me know!!
Grow Your Portfolio
Delivered Every Week - Bull or Bear Market, Correction Risk, and Indexes I Like.
Don't get caught up with what could happen and start taking advantage of what is happening!