Short term in downtrend but long term uptrend intact

The monthly oscillator and prices are in an uptrend, so the long term uptrend of the market is intact.

On a short term basis (daily prices) at the recent high of the oscillator the prices did not make a new high. Now the oscillator is at the low end and has not turned up yet. However the prices have not cut the prior low either.

The possibilities are as follows:

1. The prices undercut the prior low next week then we are in a short term downtrend.
2. The prices do not undercut the prior low next week and move up. Then we are continuing our basing or consolidation of daily prices.

So stay fully invested for the long term. For the medium to short term do not add any new positions and aggressively sell your weaker holdings.



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