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Bullish & Bearish positions are based on Trend. Trend is determined by proprietary, non-discretionary trend indicators. The following analysis attempts to forecast what we can expect over the coming weeks and months. Analysis, by its very nature, is subjective. Buy and sell decisions are not based on this analysis, but on the current trend. Over time, trading trends is where profits are greatest. This strategy uses the S&P 500 Index for analysis.
S&P 500
Index SPX (Long Term) Chart Analysis
Last week we wrote:
"The S&P 500 Index - SPX closed with a small loss this week, after starting the week on the downside as investors worried about the crisis in Cyprus. But after the Fed announced they would continue their bond and mortgage buying program, to the tune of $85 billion monthly for the foreseeable future, the markets got back on track."
This week:
Another solid week for the S&P 500 Index - SPX as selloffs were all followed by solid rallies. The SPX closed the week at a new bull market high.
New rally highs (in this case higher even than the 2007 highs) always make news. Positive news tends to bring in investors who are still on the sidelines and have become tired of missing the rally.
As long as the SPX is in such a strong rally mode, we continue to look for strong market gains in following weeks even after any near-term profit taking which could happen at any time.
The aggressive Bull & Bear Strategy follows short term indicators in more detail.
The conservative strategy is based on long term
chart analysis and does not make changes based on
emotions, news events, etc.
This is a long-term strategy. It is designed to allow fluctuations in the market and not try to market time every little up and down. The strategy is very long term oriented.
We are in a BULLISH position in the Rydex S&P 500 Nova Fund (RYNVX) or other S&P 500 index fund.
S&P 500 Index (SPX), Long Term Weekly Chart
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BULLISH:
