Sunday, November 15, 2015

SPX Is Near Critical Support 2020

SGS Market Timer Status:   LONG 
LONG as of close of 10/23/2015
RTS Current Portfolio (2015)
RTS Past Portfolios (2008-2014)

SPX is very likely going to test 2020 level on Monday.  I expect a good bounce off of 2020 back up to back testing of 100 D-SMA around 2035 and possibly ADL-1 around 2050 by the middle of the week.

Bull Case:

A daily close above AUL-1 would signal that the sell off is over and SPX is on its way higher to new highs.

Bear Case: 

A daily close this week below 2020 for SPX would signal a high likelihood of a test of 2000 level.  A daily close below 2000 would signal more selling ahead to test September and August lows.

My Plan:

I am in cash now and planning to start opening long positions should SPX take out its all time high (2134.72) or opening short positions should SPX close below 2000.


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.