S&P 500 fell below 50-day moving average with continued downward momentum signals
Market failed to reach previous highs, suggesting weakness in C Fund performance
High volatility reminiscent of March-April COVID crash warrants defensive positioning
Here we are at midweek and on Wednesday the S&P 500 “gapped open to the downside”, and kept on dropping throughout the day as it closed at 3271. From a technical perspective, the S&P 500 crossed below it’s 50 day moving average (MA) on Monday, and then today the 50 day MA also reversed it’s slope to the downside. Additionally, since it’s last record high of 3580 on 2 September, the S&P 500 dropped to a support level of 3236 on 23 September. It’s next move to the upside then stalled out on 12 October when it closed at 3534, falling short of the previous high. Given these downward trending conditions and the extreme market volatility we experienced with COVID in March and April, we are putting out this intraweek reallocation as follows.
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date.
For current recommendations, subscribe.
Here we are at midweek and on Wednesday the S&P 500 “gapped open to the downside”, and kept on dropping throughout the day as it closed at 3271. From a technical perspective, the S&P 500 crossed below it’s 50 day moving average (MA) on Monday, and then today the 50 day MA also reversed it’s slope to the downside. Additionally, since it’s last record high of 3580 on 2 September, the S&P 500 dropped to a support level of 3236 on 23 September. It’s next move to the upside then stalled out on 12 October when it closed at 3534, falling short of the previous high. Given these downward trending conditions and the extreme market volatility we experienced with COVID in March and April, we are putting out this intraweek reallocation as follows.