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Dec 1st 2015

posted Nov 30, 2015, 6:26 PM by sms investing   [ updated Nov 30, 2015, 6:46 PM ]

Bear Market Monitor
Refuse to Lose*

Our "Refuse to Lose" indicator applies several tests to determine current market conditions.

The S&P 500 index continues to regain lost ground as it remains above resistance level at 2060. The biggest driver over market actions seems to be reactions coming out of the FOMC (Federal Open Market Committee) over their stance on interest rates.  

Our "Refuse to Lose" indicator shows we are currently in a BULL market. While we are currently still in the range of a "correction," it is not enough to indicate we have transitioned to a BEAR market, nor has it recovered enough to confirm a positive trend. According to our calculations, a Bear Market would not be indicated unless we drop below 1814 on Friday(Dec 4th), or below 1938 Tuesday (Dec 1st). In summary, our indicator shows we are currently in a correcting BULL Market.

It is our opinion at SMS Investing, that the best course of action in uncertain times is to stay invested and continue to focus on growth through continued contributions. Look to dips in the market as an opportunity to gain shares a discounted prices. Additionally this is a good time to evaluate what is your "risk tolerance" and consider whether or not you are too aggressive (or maybe not aggressive enough) in your investment style.

To Read more about our "Refuse to Lose" indicator, see the related article in our news letter archive.
*Disclosure: Not a guarantee against loss. Active management techniques may reduce returns compared to buy and hold. Back testing results may not be indicative of actual performance. Past performance does not imply future returns.