The S&P 500 finished the week down 1.26% after it was all said and done. The week started out great for the bulls, but they could not hold on. They simply did not have enough power to continue pushing the S&P 500 higher or even keep it at a steady price. By Wednesday afternoon, the bears had taken over control and they were relentless.
Our monthly readings of the bull or bear market are now in the negative territory. We have to wait until the end of the month to see how it finishes, but if the bulls do not get their act together, the reading will surely signal sell. The international markets have been screaming sell for quite some time and they continue to do so. Of course, there are some that are bucking the trend, but they still don’t look good…they just look a little bit better as they haven’t fallen as much.
When it comes to the portfolio, we did not get stopped out of anything, but are pretty close on the weekly swings with regards to the US equity positions of Healthcare and Technology. The US Dollar position was up for the week and has much better structure than US equities. It is close to recent highs while US equities are close to recent lows. Preferred stocks are hanging in there although they have been beaten up akin to the equities markets.
There are no buy signals flashing coming into this week to be excited about. We are going to watch closely the current positions and the level of the S&P 500. It is sitting on support, but doesn’t look terribly healthy. If it breaks to the downside we have a couple of targets of potential support in which we would start looking for buy signals depending upon how fast it reaches support. Isn’t the market interesting?!! We’ll be watching closely! Have a great week!
Adam Straseske, CMT