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Small caps broke above their six-month trading range last Friday (albeit very modestly and very briefly) even as tech was selling off hard. The reason appears to be that money was flowing out of small cap tech and, potentially, into small cap financials, industrials and consumer staples.

As shares of one of our financial services companies approach long-term price resistance, I’m moving the stock from Strong Buy to Hold, simply because there’s less capital gain potential in the near-term.

Oracle (ORCL) has reached its Minimum Sell Price and should be sold. Kroger (KR) is expected to flounder in the 21.5 to 23 area for an extended period of time so it’s a Sell too.

We’re focused on seeing how the market and leading growth stocks act following the Friday/Monday wave of selling; so far, there’s been some abnormal selling but most stocks are holding key support. The overall market is also still in good shape, and thus, we’re generally standing pat, with around 22% in cash.

Not much has changed with the market environment—the overall market is good, not great, with most indexes above their 50-day lines and the S&P 500 making some progress. The action of the Nasdaq and leading growth stocks, however, remains outstanding, as they continue to race up their charts with minor pullbacks.

The Cabot Emerging Markets Timer continues to give a Buy signal, so we’re looking for opportunities to increase our exposure. Today, however, we have no changes to our portfolio.

We’re likely to bump our Market Monitor up a notch this week to level 8 to reflect the strong intermediate- and longer-term trends we’re seeing in the market. We continue to advise buying stocks as opportunities arise (either on solid breakouts or during pauses within uptrends) and to hold onto most of your strong, profitable stocks.

Overall, the market looks healthy, and we think you can continue to get a little more aggressive, putting cash to work and taking on a little more risk if you’re comfortable with it.

While not tearing to the upside, the major indexes have continued to chew into the well-known resistance areas that have capped the market for the past year and a half. And the broad market remains in great health—not only are there hardly any stocks hitting new lows (historically, this correlates with higher prices down the road), but small- and mid-cap indexes are the strongest out there.

The market has maintained its intermediate-term uptrend, and you can continue to become more invested, cautiously. Today we’re putting Target (TGT) back on Buy after the retailer reported improvement in some key metrics in the latest quarter.

On average, our portfolio is outperforming the Russell 2000 Small Cap Index (the most common benchmark for small caps) in 2016. We have a few stocks lagging the index, largely because of a drop in a few stocks over the past few days.

We’ve grown incrementally more bullish in recent days for three reasons, and we’ll probably bump up our Market Monitor another notch on Monday; the way we run our portfolio, something in the 65% to 70% invested range makes sense at this point.

I’m adding Mattel (MAT) to the Buy Low Opportunities Portfolio, and selling Carnival (CCL) from the Growth & Income Portfolio.

We’ve had nice run-ups in the DJIA and the S&P 500. Please expect a pullback, which would be perfectly normal and healthy too. The Dow could fall 6% to 18,600, and the S&P could fall 3% to 2,190. Unless a disruptive event happens, I would expect a stock market correction to be quite temporary.

The stock market has been having quite the party over the past month. Since November 8, the date of the election, the S&P 500 is up by 4.8%. Small caps have crushed that performance, rising by almost 16% over the same timeframe.

Our two portfolio moves today are to buy a half position in Pampa Energia (PAM) bringing the portfolio to 45% invested and moving Melco Crown (MPEL) to a Hold after a Chinese government move knocked it lower.

The market may have turned an important corner this week--stocks not only rallied, but all of the major indexes we track spiked back above their 50-day lines, which was one of the signs we were looking for to tell us the month-long correction was ending.

After a month-long market correction, our market timing indicators are now mixed. On an intermediate-term basis, the fact that all the major indexes dipped a percent or more below their 50-day lines is enough to question the post-February market uptrend.

90% of our focus remains on the intermediate- to longer-term picture of the market and individual stocks. And on that front, nothing has really changed—the trends remain clearly down, and thus, our Market Monitor remains in bearish territory and we continue to advise a defensive stance.