401K Monthly Analysis – Still Sideways but… 8/9/15

The S&P100 (SPY) chart shows an exit long signal and remains heading sideways. Overall it feels like the market is dropping down based on recency as the Dow Jones 30 (DIA) has had several down days in a row. The Nasdaq 100 ETF (QQQ) is also showing a down signal but is caught in a sideways trail. The Dow Jones 30 has actually dropped below its support and is the weakest of the 3.  See charts for all 3 below. 

Given this environment I am in money market funds in my 401K. Overall the market has been treading sideways for several months frustrating traders. The only resolution possible to a sideways market is either up or down. Right now the signals are all down and it is what keeps me out of the markets. If the signal turned upwards and that is certainly possible, I would change my mind. I do not know which way the market will go down the road. No one does. All I can do is follow my signals.

Based on monthly analysis, the strongest funds in my current employer’s 401K fund choices are: Fidelity Div Intl, Fidelity Blue Chip Growth and Fidelity Growth. I am in none of these for the reason stated above; but if I were to follow a momentum method in my 401K then these would be the funds I would be in. 

In my previous employer’s 401K funds, the strongest ones are TRowe Price Intl Disc, Fidelity Div Intl and Fidelity Contra fund. Again, I am in none of these and in money market funds in my 401K. I have a small amount in Fidelity Govt Bonds but should shift that to money market Monday.