Sunday, November 8, 2015

Rally Since September 29 Has Probably Ended

SGS Market Timer Status:   LONG 
LONG as of close of 10/23/2015
RTS Current Portfolio (2015)

In Cash - Updated for recent trades
RTS Past Portfolios (2008-2014)

Last Friday marked the first time that SPX put in lower highs, lower lows and lower closes three days in a row since September 29 when the recent sharp rally started.  Also last Friday marked the 2nd day that SPX traded below its AUL-1.

At this point, chances are good that SPX sells off to test supports at its AUL-0 and DTL around 2085 early this coming week.  A close below those supports would signal a high likelihood of further selling for SPX to back test its 200 D-SMA around 2065.

Immediate resistance for SPX is at its ADL-0 around 2105, then at its TDL around 2115 and finally at its PDL-0 around 2129.

My Plan:

I closed all remaining short positions on Friday.  I am in cash now and planning to start opening long positions should SPX take out its all time high (2134.72).


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   
TUL: Tentative Uptrend Line   TDL: Tentative Downtrend 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.