Sunday, April 5, 2015

Down Side For SPX Is Limited

SGS Market Timer Status:   LONG 
LONG as of close of 3/16/2015

RTS Current Portfolio (2015)
Last week on Thursday, SPX tested its triple resistance point (AUL, 50 and 20 D-SMA at 2072) and quickly sold off to close at 2067.

SPX futures are down 0.7% as of this writing due to disappointing job numbers released on Friday.  In very short term, bad job numbers are negative, but in intermediate to long term weak employment data is quite bullish because:
  1. The Fed is going to remain dovish and leave interest rates alone for foreseeable future.
  2. Weak employment data means lower labor cost for companies.
Chances are good that SPX initially sells off to 2040 on Mon before heading higher.

SPX: S&P 500 Index    D-SMA: Daily - Simple Moving Average
DJI: Dow Jones Industrial Index    D-EMA: Daily - Exponential Moving Average
DJT: Dow Jones Transportation Index    PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index    PUL: Primary Uptrend Line
RUT: Russell 2000 Index    ADL: Active Downtrend Line
OEX: S&P 100 Index    AUL: Active Uptrend Line
NDX: Nasdaq 100 Index    DTL: Dynamic Trend Line 

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.