Saturday, April 15, 2017

A Volatile Week Is Very Likely Ahead

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

SGS ticked lower for the week, signaling more selling is very likely in the coming week.  As of the close of Friday, all major indices (DJI, DJT, NAZ, RUT and SPX) are trading below their 50 D-SMA's. That's bearish and signals more selling ahead.

My Outlook

Bears are firmly in charge now and will push indices much lower next week.  I expect SPX to test price support at 2300 and its PUL-2 around 2260.  A close below PUL-2 on weekly basis would signal significant selling ahead.

My Plan

No change since last week, I am going to follow SGS and start buying SPY if SGS starts to uptick and closes above its DTL. If SGS continues lower and crosses its zero line 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.