Special Bulletin: February 26, 2025 (12:30p Update)

Red Alert: Weakness is Growing

Last week we wrote, “The stock market is rightfully-so confused and at a crossroads. Little or no price progress has been made in the popular indexes since around December 6th – that’s 2.5 months! This sideways action won’t last indefinitely. A breakout or a breakdown is inevitable. Leading stocks have been flashing some bullish bias, but landmines among them have been occurring as well. There is not much of an “edge” for most growth investors at present.”

“Under the surface, a reliable and rare technical event regarding daily new lows on the NYSE triggered an early sell signal 2 days ago. The NYSE P/C ratio is a bit low, too, suggesting in the very least that a minor pullback is due.” (Some new emphasis was added.)

That pullback (or a worse event) is already developing. FYI: The “sell signal” mentioned above was triggered on 02/13.

Our Current Market Outlook was downgraded to “Market in a Correction” with a red light as of 12:30pm today, Feb 26th, with the SPX @ 6,000.46, after the S&P 500 failed to overtake the 6,010 level around noon. Our Core Four has moved to red with yesterday’s action and currently has 2 red and 2 yellow lights with a confirming VIX well over its all-important 50-day mav.

The major indexes have been under heavy selling pressure lately. The S&P 500 is under (but is testing) it’s 50-day mav; the Nasdaq has already sub-combed to its own 50-day. This is a VERY critical juncture for the stock market. A day or two bounce is possible, but if one happens we will study the internals to see if it has staying power… or not.

“But He replied to them, “When it is evening, you say, ‘It will be fair weather, for the sky is red.’ And in the morning, ‘There will be a storm today, for the sky is red and threatening.’ Do you know how to discern the appearance of the sky, but cannot discern the signs of the times? An evil and adulterous generation seeks after a sign; and a sign will not be given it, except the sign of Jonah.” And He left them and went away.”

Matthew 16:2-4 NASB 1995

Game plan: Continue preparing for the economic battles the new Administration is undertaking. Begin executing your exit strategy and keep losses small- protect your capital as there will be another fruitful time in the future. Pray for discernment from the Lord Jesus. Pray for the peace of Jerusalem (Psalm 122:6-7). May they prosper who love her.

Note: You can learn more about The Triumphant Core Four risk management system by clicking here.

Have a Triumphant day! ®