Market Timing Brief for the SP500 Index Close on 2-21-2014: The Kiss Has Been Had

A Market Timing Report based on the 2-021-2014 Close published Saturday February 23, 2014

And now we’ll see if it’s more than just a kiss of a top.  The SP500 Index (SPX, SPY) did come very close to the prior high (not the even earlier all time high though) and it pulled back.   Is that it?  No one can tell you and everyone can guess.  Instead of guessing, we learn from the market.  In the past, as I detail on the private access page (get the password below), damage such as we’ve seen recently is not often followed by new highs.  So maybe that is a bit of guessing after all.  ; )  The difference is, we’re willing to take action only based on the market’s behavior.  And we’re willing to admit we’re wrong and get back in if we sell or get back out if we buy.

A new high is possible if the “Great Rotation” from bonds to stocks continues, but I’d favor that we won’t go higher than the January high of 1850.84.  We stopped at 1847.50 on Weds. and tested that high and failed on Friday.  Going to a new high would just make the subsequent sell-off that much more nerve-wracking for investors on a percentage basis.

Please read my investor sentiment work from Thursday if you haven’t.  It gives you my trading strategy.  You can access those thoughts after getting the password here: Free Subscription to My Newsletter and access to my latest comments  I’ll send you back the password to the access page and the monthly newsletter in the same email.

Here’s the SP500 Index Chart: (Note that the 50 day moving average is buried under the second red line from the top as they converge.)

sp500-index-market-timing-chart-2014-02-21-close

Re-top! Will there be a higher high now or is that it?

NOTE: The Gold and 10 Year Treasury Market Charts have been posted.  See the link to the upper right.  Thanks.

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Standard Disclaimer: It’s your money and your decision as to how to invest it.

I also comment regularly on Twitter: Follow Me on Twitter

I thank Worden Brothers for the chart system I use to post these charts.  If you want to know more about the charting system I use every day, go to my “Other Resources” page here:  Other Resources   It makes it much easier to follow along with me if you can see the charts and manipulate them on your own computer, so it’s a great investment to have an excellent charting system.

Look for updates on the main chart tracking pages this week as I feel they are needed and comments via Twitter.

Copyright © 2014 By Wall Street Sun and Storm Report, LLC All rights reserved.

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