6-9-10 Market Indicator 2 Change

The Major Market Timing Indicator #2 changed to UP today. The publisher moved part of his holdings to aggressive funds with the change. The publisher will wait for a “higher closing high” to move additional holdings to an aggressive fund.   A “higher closing high” is a simple buy signal where the S&P 500 closes higher than the previous day’s high. 

The publisher will use a “stop loss” level of 1039 for the position. (Google search “stop loss order” if you aren’t familiar with this concept). A close of the market below 1039 will likely trigger a “DOWN” signal in Indicator #2. If the S&P 500 moves below 1039 during the day but then closes above or near 1039 that same day a “DOWN” indicator will not be generated.

The Europe financial problems and the Gulf of Mexico disaster are continuing to cause unusual market behavior, and a higher risk of further market drop.