The market kept up well last week, and our lunar Red Period recorded a small gain for the Nasdaq Index.
This is the strongest lunar Red Period since early February, so a sign of strength that we should not negate.
Does this mean the market is ready to run?
It’s too early to tell. Let’s have a look at the chart for the S&P 500 (click for larger image):
There is important support around 1340, and then 1300. But, we are entering a new lunar Green Period, which favors a move to the upside. The market can rise to 1400 here, but that’s where resistance is likely to occur.
If the market fails to continue upwards in the next couple of weeks, then it would negate the current sign of strength and the odds would shift to the downside again.
As long as we remain in muddle-through-summer sideways mode, we are not likely to get consistent signs of strength or weakness. At some point we will go into trending mode again, and then we try to be on board on the basis of what the lunar phases suggest.
It is a time to be patient and ready. We do not need to be in the market at all times.
Be well, Danny