Friday, November 4, 2011

200 Day Simple Moving Average (200 D-SMA)

SGS is LONG (As of close of 8/24/11) 
RTS 200110825 Long Portfolio (Bench Mark)

October powerful rally peaked on 10/27 with NAZ, DJI, SPX nicely trading above their 200 D-SMA's and DJT, RUT testing theirs.  Then Market sold off and all five major indices closed below their 200 D-SMA's and traded there for a few days.  What's happening now is a retest of Market's 200 D-SMA (all five major indices collectively) and it is critical that Market closes above its 200 D-SMA and continues to trade there.  NAZ and DJI closed above their 200 D-SMA's yesterday.  We need to see the remaining three flow suit by early or mid next week (next Friday at the latest) or the bull run would be in trouble.  I am optimistic and believe we see that within the next couple of trading days (even as early as today).

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.