IBD still considers the market to be in a correction. My GMI indicators climbed on Tuesday. It remains to be see whether this market can rise after the 2nd quarter is over.
Mainly in cash
I would not trust any bounce this week because it may only be end of quarter window-dressing by the mutual funds. Given the continuing market correction and the uncertainty with regards to raising the debt limit, I transferred some of my university pension funds into money market funds today. I normally wait for a definitive Stage 4 decline before exiting, but I am not willing to risk losing a lot of money now. If I am wrong, I will move back into mutual funds. I remain in cash in my trading account with one little short position.
Friday was 24th day of QQQ short term down-trend; window dressing time
As we get to the end of the 2nd quarter, I expect that the mutual funds will dress up their portfolios with the best big name stocks. That way their quarterly reports will show them holding the stronger stocks. So we may see some strength this week. But all of my GMI indicators are negative. I remain on the sidelines, in cash.