Market Trend is Still Bearish

We use the direction of the Fidelity Spartan 500 Index fund (FUSEX, up 2.18% in yesterday’s session) as the proxy for the overall market trend. In spite of the nice rally yesterday, we caution investors that FUSEX is still below it’s trendline, which forecasts the continuation of the bearish market trend until FUSEX is able to make a larger move on the upside.

Fidelity Spartan 500 Index fund (FUSEX) is well below the trendline (100-day moving average)

Fidelity Spartan 500 Index fund (FUSEX) is well below the trendline (100-day moving average)