Sunday, October 26, 2014

On Our Way To Another All Time High?

SGS Market Timer Status:   NEUTRAL 
as of close of 10/14/2014
RTS Long Term Current and Past Portfolios

Last week turned out to be pretty ugly, but ugly for bears.  Bulls actually had a really nice week as SPX took back 7.5% of its recent 10% (2019 to 1820) correction.  I believe SPX is on its way to make yet another all time high by the end of this year, but first it needs to retest its recent low (1820) or at least its Primary Uptrend Line (PUL) around 1900.

Chances are good for SPX to test its 50 D-SMA (most significant and immediate resistance) around 1970 early Monday and starts to sell off to retest its supports at 200 D-SMA (1910ish) and possibly PUL (1900ish) later in the week.  Should those two supports fail, chances are good that SPX sells off to retest its recent low around 1820.

A daily close below 100 D-SMA (1960) would turn SGS from NEUTRAL to SHORT.  My plan is to do my first of three short selling of SPY as soon as SGS turns SHORT.

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.