The Model. The KP Trend Model continues Green, full exposure to US equities.
From the Trading Room. Last week, we saw signs of a potential slowdown or pause in momentum, both with price and with the internal data. This slowdown is evident in the chart of the Intermediate-Term Model below.
Our Tactical Exposure Study also Illustrates the pause by descending below its red neutral line and shifting to a ‘Plus 2’ status, which we read as ‘modestly oversold in the context of the advancing market trend.’ Assuming that the uptrend remains intact, the study suggests a return to aggressive long equity positioning.
