- NYSE reached its high point on 1st day of May and then started the decline
- We got the SELL signal from our history teacher "BPNYA" Index shown below on May 13th
- So far NYSE has experienced a correction of almost 8% from the top on May 1st
- So far NYSE has experienced a correction of almost 5% from our SELL signal
- NYSE index sitting right on 200 day Moving Average [also known as SMA(200)]
Possible Conclusion: Typically SMA(50) or SMA(200) can act as support (spring board if price is above it) or resistance (cap if price below it). We saw 1st support (spring board action) and bounce on around mid June, we may see similar action next week (optimistic view) or it might break the support and keep going down (pessimistic approach).
Below BPNYA Index chart combined with NYSE Index shows how our SELL signal was a good guidance of what was coming our way. We moved our long term savings into money market or cash and avoided the loss.
What does it mean for our Long Term Funds!!!
401K/HSA/College Fund: We remain in money market funds until we get BUY signal
Traditional IRA/Roth IRA: Based on our "Advanced Strategies" section we should/could have invested in BOND/Inverse ETFs when we got the SELL signal. But if we did not do it then now may not be the right time to enter as we might stay in a range or get a bounce here, so waiting for the right opportunity is the best strategy.