Saturday, August 26, 2017

SPX Very Likely Tests Critical Support

SGS  Market Timer Status:  SHORT 
SHORT as of the close of August 18, 2017
SGS is a Long-Term (weeks to months) Timer

SGS advanced last week but still closed below zero for the week, signaling more selling ahead. 

SPX closed above its W-DTL (13 W-EMA) but still below its ARL.  Chances are high that SPX sells off for the next couple of weeks to test support, initially at its PUL-3 and ASL around 2400, and then should that support fail, at its 50 W-SMA around 2300.

At this point, chances are high that the sell-off since SPX 2490 ends around SPX 2400.

My Plan

My plan is to open my second SDS position early next week should start to trade below support at SPX 2435 (last Thursday's low).

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.