Has the Trend Changed?
This is one of our models that we post weekly instead of daily on our paid website. Its purpose is to focus more on medium term trends rather than trading. Since the old adage of "don't fight the trend" has been and still is good advice, we will look at what this trend model is showing for the S&P 500 today.
According to this model, the trend changed to a down trend on May 4th.
Right now, the Up/Down Trending indicator is sitting on the dotted horizontal line. That line is critical, because a drop below it would intensify the power the Bears have in the market.
Until this high-risk condition is resolved, this is no time to be a "bottom fisher" or bargain hunter. Preservation of capital is still a smart strategy and that means avoiding high-risk situations.