The GMI dropped to 5 because the Successful 10 Day New High component of the GMI turned negative. As long as the GMI remains above 3, I have no concerns about the current up-trend. Furthermore, next week is the end of the first quarter, and mutual funds will be buying up the strongest stocks so they will appear in their quarterly reports. The reports don’t specify when the stocks were bought, so every portfolio manager can appear to have bought the winners before they rose. So, I believe that any weakness in the winners is setting up a major rise at the end of the week into next week. AAPL and the other leaders should gather strength. I am fully invested on the long side and will ride this up-trend until it ends.
Meanwhile, gold appears weak to me. I own put options on GLD because I think gold is at the beginning of a major Stage 4 decline. Check out this weekly chart of GLD.