All the long-term Trend Signals for the S&P 500 are pointing up after the closing of April 2011.
Investors who are trend following the S&P 500 can take it easy during May.
However, the different stock market indices are normally moving very much in tandem.
And for the NASDAQ, one of our custom-developed trend signals, the MATI, indicated an increased risk for a pullback. Such a pullback could last weeks or months. And a pullback in the NASDAQ is unlikely to happen without a pullback in the S&P 500.
Therefore, investors can be cautious to allocate more money or to start investing in the US markets at this moment.
For all investors from Euro-countries: yes, the gains we see in the S&P 500 are offset by the decline of the US Dollar against the Euro.