GMI recedes to 2 (of 6); $SPY looks very weak–Stage IV decline?, in cash

GMI2/6
GMI-24/8
T210826%

There are times when I should just be on the sidelines–like now. We are still waiting to see if the March decline was just the first leg of a huge multi-month decline or a quick bottom. No one knows. Why risk money after getting out unscathed. Declining 30 week average (solid red line) is a major sign of weakness and possible Stage IV decline. If so, the decline is just beginning. Note how easy it was to be profitably invested when the SPY was above its rising 30 week average (Stage II) in much of 2019. Better to wait for a new Stage II up-trend.

 

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