THE MARKET MOOD
Still GO Sign market.
The Go-Sign signal remains in effect with another six-week outlook remaining bullish.
Later in March and going into April, the market may experience some resistance to its upward trend. Expect prices to become slightly more volatile, though any dip in prices below the 20-day moving average of any particular stock is probably an opportunity to make a purchase.
As in February, our signal remains on GO. The S&P 500 touched yet another all-time high on March 1 at 2400.98.
Since then, the benchmark has sidestepped to its current level at ~2375. It remains at an 8% premium above its 12-month simple moving average and is overbought on its 14-month RSI. While we are, again, still broadcasting a GO signal, I suggest using smaller share size to enter new positions and maintaining firm stops.
Last month, I mentioned the iShares Russell 2000 and its ETF, the IWM, as a potential leading indicator for the broader market. Currently, the IWM is sitting atop its 50-day SMA, after stretching to an all-time high on March 1 of 140.86. I am now watching the IWM to see if it can stay above its 50-day SMA. If it can, that should be a positive for the market. If it cannot, I may take some profits off the table.
Keep green on your screen!