7-13-2011 New “UP” in Indicator 1

The Major Market Timing Indicator #1 will change to UP on Thursday 7/14/2011, effective at Thursday’s close. The publisher is adjusting his holdings to 100% stock funds with this change. I typically only move money into stock funds at around 3:30PM (before the market close) on days that the market (S&P 500) closes higher than the previous day’s S&P 500 high – this helps avoid investing in a falling market. Here are the scenarios moving forward.

It’s possible the market will fall 2-5% further from here despite the new “UP”. The market falling below 1248 would likely trigger a reversal back to “DOWN”.

Given the recent bad economic news, I am playing this more conservatively than normal and investing 100% in an S&P 500 Index fund (instead of a more aggressive technology fund).