Sunday, August 6, 2017

SGS Market Timer Is Neutral

SGS  Market Timer Status:  NEUTRAL 
NEUTRAL as of the close of August 4, 2017
SGS is a Long-Term (weeks to months) Timer

Despite DJI reaching new all-time highs, the broader market declined with increasing number of new lows and decreasing number of new highs for both NYSE and NASDAQ.  SGS continued its decline last week and closed below its DTL for the week.  As of the close last Friday, SGS is "NEUTRAL". 

Last week DJI rallied while all other four major indices (SPX, NAZ, RUT, and DJT) declined. This type of divergence in an aging bull market is never a good sign.

The rally that started in early 2016 (from SPX 1810) is very likely has reached or about to reach its peak (2500 +/- 1%). Chances are good that SPX enters into a 5% trading range (2500 to 2350) for a couple of months until the shit show in DC ends one way or another.   

My Plan

I'm planning to close my long positions in SPY, SSO, and UPRO sometime this coming week.

SPX: S&P 500 Index    SMA: Simple Moving Average
DJI: Dow Jones Industrial Index    EMA: Exponential Moving Average
DJT: Dow Jones Transportation Index    PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index    PUL: Primary Uptrend Line
RUT: Russell 2000 Index    ASL: Active Support Line
OEX: S&P 100 Index    ARL: Active Resistance Line
NDX: NASDAQ 100 Index    DTL: Dynamic Trend Line   
TUL: Tentative Uptrend Line   TDL: Tentative Downtrend Line
TLR: Trend Line Resistance   TLS: Trend Line Support

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.