For now, the market is in a down trend. You can tell for several reasons. First, the MACD lines are open and pointing down on a daily and week chart. Second, there is severe negative triple divergence between the price action of the S&P 500 Index and the stochastic on a weekly chart. Third, the market is reacting poorly to bad news. In an up trend, the market ignores bad news.
I chose to leave the C Fund @ 1300 on Friday, June 3.
Q: Could the market bounce? Yes, it could and probably will. However, any bounce and rally should be sold in the short-term.
If the market should bounce and reach the 1320 level, that would be another good opportunity to leave the C Fund.
Why the 1320 level? 1320 reflects support turned into resistance on a weekly chart. The 13-day moving average on a weekly chart stands @ 1324. There are no guarantees in this business. It is possible that the market might not bounce.
Enjoy the Summer! There are other things to do besides the market. There won't be much going on in the market for a while.
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