MTI: Momentum Category Remains Strongest Pillar
The Major Trend Index fell 0.02 to a ratio of 1.14 in the week ended January 27th, with a 17-point loss in the Economic/Interest Rates/Inflation work responsible for the decline. While the MTI’s margin above its 0.95-1.05 neutral range is not especially large, the bull market deserves the benefit of the doubt. We plan to hold off on any defensive moves until the MTI formally breaks into that zone.
Net equity exposure in the Leuthold Core and Global Funds has moved higher alongside the market in the last month, and now stands at 65% in both funds.