Sunday, March 12, 2017

Selling Continues

SGS  Market Timer Status:  LONG 
LONG as of close of November 11, 2016
SGS is a Long-Term (weeks to months) Timer

SGS continued to put in lower highs last week for the second week in a row since SPX put in a fresh all-time high (2400.98). If selling accelerates, SGS would cross zero line and turn SHORT sometime this week.

Short-Term (days to weeks) Outlook

Shorter term, despite selling since March 1, indices are still overbought.  Chances are good that SPX continues going lower this coming week and tests of its PUL-3 around 2350.

Long-Term (weeks to months) Outlook

Longer term, chances are good that SPX continues to sell-off and test its AUL around 2340 sometime this coming week and then its W-DTL around 2310.

My Plan

I am going to follow SGS and start buying SPY if SGS starts to uptick and closes above its ADL. If SGS continues to go lower and turns short, I would start opening short positions in SPX by buying SH.

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.