MTI Moves Up But Remains Negative

The Major Trend Index rose 0.03 in the latest week’s data to 0.92. The Momentum/Breadth/Divergence category, with a moderate gain, is primarily responsible for the improvement. Our shortest-term indicators are solid enough that we wouldn’t rule out a narrow move to new cycle highs in the DJIA and S&P 500 during the first week or two of 2016, but our longer-term work still points toward considerable cyclical risks for equities. The Core and Global Funds both remain positioned defensively with net equity exposure of 39%.