Saturday, July 16, 2016

Are Bulls Back?

Charts Say YES

As of close of Friday, three (DJI, SPX and RUT) of five major indices (3 mentioned plus NAZ and DJT) are trading above their PDL-0.  That is bullish and at this point chances are good that major indices continue their rally for a while.  Shorter term, however, indices are quite overbought and chances are good that indices sell off early next week before resuming their advance higher.

For SPX, shown above, chances are good that we see a sell off to back test PDL-0 around 2130 to 2110.  I'm going to be watching SPX to see how it trades in that 20 point support range and make a decision as to opening long positions.

SGS_LT Market Timer Status: NEUTRAL
NEUTRAL as of close of  July 8, 2016
SGS_LT is a Long Term (weeks to months) Timer

Current Long Term Portfolio (2016)
Past Long Term Portfolios (2008-2015) 

My Plan: 

Last week on Monday, SPX closed at a new all time high.  Per my plan I covered my short positions on Tuesday.  I'm in cash and looking for to open new my first of three long positions in SPY as SPX sells off to back tests its PDL-0 probably early this coming week.


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 informational  purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.