Sunday, October 22, 2017

Indices Are Heading Much Higher

SGS  Market Timer Status:  LONG 
LONG as of the close of September 8, 2017
SGS is a Long-Term (weeks to months) Timer

Why Market Timing Is A Must

On Friday SGS bucks its declining trend and headed higher, confirming the rally in all major indices.  With SGS above 50 and the market entering into a seasonally bullish period, chances of a significant correction is slim to none.

Q3 earnings and outlook have been pretty good.  Chances are high that SPX continues going higher in its well-formed price channel as shown on the weekly chart above. 

My Plan

Last Thursday SPY opened below its ASL and sold off to test its DTL shortly after the open. Then, SPY rallied and closed well above its ASL.  On Friday, SPY continued its rally and closed well above its ARL.  The rally on Friday and where SPY closed was significant because it rendered the bearish rising wedge and flag price formation invalid.

At this point, chances are high that indices continue their rally for the rest of the year.  My plan is to open my first (in SPY) of three long positions sometime Monday morning.


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.