Wow, what a strong up week! So much for the news dictating what the market "should" do. Unless you've been living in a cave you no doubt know the shenanigans going on in Washington. Logic would tell you when the news is bad and the threat of another US credit downgrade would cause the market to fall. Instead, the market brushed that off this past week and rallied to all time highs at 174.51 (see weekly spy chart). The market is now above the September high of 173.60 and appears to be headed even higher.
CONCLUSION
As I've stated ad nauseam in prior posts I would still be a bit cautious about going "all in" if you've been 100% out due to overbought nature of the market. However, I do think it's prudent to slowly commit more capital as the market proves it can move higher. This next week is a very critical week as it can either confirm that this week was a true breakout or a false breakout. More on that next week. Be blessed and have a great weekend.
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