Weekly Commentary

June 30, 2010

The markets have retreated further during the last week, and are now retesting the lows from February. Consumer confidence is waning, and a growing fear of a double dip recession has pushed the markets lower each day. Technical support at the 1045 level of the S&P is now well established, having been tested in early February prior to the February-March-April rally, and being retested again in late May and for a third time in early June. If selling pressure forces market prices lower, and formentioned support turns into resistance then the potential for further price depreciation exists. The Stadion portfolios are currently defensively positioned in cash and fixed income ETFs, and should a decline occur we are well positioned to handle that market action. If on the other hand market participants find the current prices attractive, and a positive trend builds with confirming market breadth data, the Stadion Investment Model should quickly signal for increased equity allocations in the portfolios. - SMM-062010-051

Looking for more insights?

Visit the Weekly Model Commentary archive for past comments.