On what basis we think this might be a possible scenario?
Well, Fridays job report was certainly not appreciated by the market and hence the decline. From next week, earnings season is starting which shall provide a better guidance in terms of market direction. Usually, earnings season is known to be volatile, which means market can be up 1 day and down next day. Also from past 6-8 earnings season, market have been able to post a nice rally going into earnings season followed by a decline after 3rd-4th week from the start of the earnings season. Do we need to keep track of all this! Not necessarily as our history teacher will guide us accordingly.
At this point, market may decide to take a breather and might take a day or 2 or may be few more days to continue the rally again which means our BPNYA Index might follow the path shown above. If that happens then it will provide us a good entry point for our investment options. For some reason if you are not yet invested in your 401K/IRA accounts then this might be your chance to get back in the upcoming rally.
What does it mean for our Long Term Funds!!!
401K/HSA/College Fund: We get the BUY signal last week, and Fridays market pullback will provide us an opportunity to get back in the game. We enter the highest ranked Mutual Fund available to us. You can find the highest ranked Mutual Fund by using the spreadsheet available here.
Traditional IRA/Roth IRA: Based on our "Advanced Strategies" section we should be using our BULL market ETF list now that we have the BUY signal and invest in the highest ranked ETF.