Sunday, February 4, 2018

Is Selling Done?

SGS  Market Timer Status:  LONG 
LONG as of the close of Friday, September 1, 2017
SGS is a Long-Term (weeks to months) Timer

Why Market Timing Is A Must

There is a good chance that SPX sells off another 15 to 20 points tomorrow morning and tests the support around 2740.  After that, SPX very likely rallies to test key resistance around 2800.  How SPX behaves as it tests 2800 level would tell us if selling is done or there is more to come.

SGS declined significantly last week but it is still above 50 as of the close of Friday and hence its status is still long.  That means the probability of higher prices ahead for indices is considerably higher than the probability of lower prices.

SPX found support at its PUL-6 on Friday.  There is a good chance that, after an initial panic and margin call selling on Monday morning, we see SPX rallies to test its immediate resistance at 2800.  How SPX behaves on its way to 2800 and around 2800 would tell us if the selling is done and a rally to higher prices for indices has started. In that case, we should see SGS advanced higher on Monday.

My Plan

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.