The market is still in a technical downtrend. It is, however, quickly approaching a key level of resistance. If the market can break it's downtrend by rising above the upper blue line (highlighted below), then that would be a big win for the market and a potential turning point, for the time being. We've begun to find some opportunities and thus have redeployed some cash; however, until we break this downtrend, our cash levels will remain a elevated.
- The market appears to be gaining strength.
- This pull back could end (for now), we remain defensive, yet optimistic.
- Some other key indicators we watch appear to be becoming positive; however, some are not.
- Downtrend is still in effect - thus caution is still warranted; however hunting for opportunities could be appropriate; would avoid overly aggressive positioning until we get the breakout.
- S&P 500 needs to break out of the down channel trend in order to regain confidence of a continual longer-term up trend - otherwise we may have not yet seen the bottom.
S&P 500 Daily Chart
Source: Cannon Advisors, StockCharts data