Near Term Trend: Positive
Friday’s Close: 2274.64 (+ 3.55)
UPDATE: Four weeks ago as the Index was trading near 2270.00, we stated, “The Index sold off from the historical highs. In the grand scheme- it means very little, but I would not chase the long side at these levels”.
Last week, we suggested to book profits on at least 30 percent of your U.S. Equity holdings. Even if the Dow Jones Index is seeking 20,000 target it won’t be long into Q1 when profit taking could be initialized.
In my humble opinion, the risk of holding large profits in stocks with another 3 percent max gain to the upside is not worth the risk.
NOTE: The current pattern represents a sideways consolidation. 50/50 chance it breaks out to the upside or this may be a bear term top.