Saturday, April 8, 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 ticked lower for the week, signaling more selling is very likely in the coming week.

My Outlook

Bearish Case (70%): Chance are high that SPX tests its TUL (shown in pink) and W-DTL this coming week.  A daily close for SPX below 2345 would signal more selling and very likely test of price support at 2275 and PUL-2 around 2255.

Bullish Case (30%): If SPX starts trading and closes above its PDL-0, then chances would be good that SPX moves higher to challenge its recent highs.

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.