401K Monthly Analysis – SPY Conflicts 6316

The S&P500 (SPY) points down. Attached below is a chart of SPY showing the down signal. My slower monthly 401K system has switched from Bond funds like Fidelity Govt fund and is showing entries into equity. What do I do? I decided a while back that I will follow my overall master switch (SPY) and use that to override any 401K picks in the equity arena. That means I will exit my Fidelity Govt funds and stay in money market for now.

Going into my previous company’s 401K the top funds selected by my monthly analysis are Royce Opportunity, Fidelity Equity Income and Spartan 500 fund, which are all equity type funds. But since my choices are governed by the SPY exit signal, I am just going to remain in a money market fund for now.

I am invested in a couple of equities, oil and another ETF. I will follow the technical signals on those separately. When there is an exit signal on oil, I will get out. I have also seen an entry signal in EEM Emerging Markets and IIF India Fund. I have taken a small position in the India fund. The overall equity markets seems to want to go up. But it is burdened by the possibility of a slowdown and soft earnings. Technical signals is the beacon that I follow.