Sunday, December 27, 2015

Selling Will Resume This Coming Week Or Next

SGS Market Timer Status:  SHORT 
SHORT as of close of 12/11/2015
RTS Current Portfolio (2015)

The three day strong rally in SPX was finally stopped by the stiff triple (50, 200 D-SMA and ADL) resistance on Thursday.   SPX is now sandwiched by its active trend lines in a symmetric triangular formation.  How SPX break out of its triangular formation will signal further move in that direction.   My guess is that SPX will eventually break to the downside and continue its selling. 

Chances are good that SPX sells off early next week to test its DTL around 2050, then there is a slight chance that SPX rallies for a false break out of its symmetric triangular formation before heading lower for a true break out.  Price objective for the symmetric triangular formation is around SPX 1845 by mid to late January 2016.

My Plan:
My plan is to open my second short position sometime this coming week.

Season's Greetings and Happy New Year


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.