S&P 500 Signals Tentative Buy

Last week I stated that it appeared from the market senitiment signal in Chart 1 below that the market was set to decline over the next few weeks.  However, the long term sentiment signal line (green) continues to approach the first confirmation signal and the intermediate signal (blue) has reversed direction slightly and still remains above its confirmation line (pink).  Due to this shift in the intermediate signal it is difficult to say which direction the market is headed, but the market remains in a tentative buy period  and a decline below 1,216.75 (or a decline approaching 3.73% or greater on any day) this week should be considered a signifcant "Tentative Buy" opportunity (Oracole 401K Investment Strategy).  Also the "Super Signal" (Chart 2) is still indicating that it is safe to buy (see chart 2 below).

Chart 1:  11/11/2004 S&P 500 Sentiment (click on chart to enlarge).

Chart 2: 11/11/2004 S&P 500 Super Signal - No Red ... Safe To Buy (click on chart to enlarge).