Sunday, April 22, 2018

Indices Will Push Higher Unless #OrangeSwan

SGS  Market Timer Status:  NEUTRAL 
NEUTRAL as of the close of Friday April 13, 2018
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

The financial meltdown of 2008 is commonly referred to as a "black swan event". An orange swan event, would refer to a major but unforeseen crisis, including a significant correction of major indices, due directly or indirectly to an action taken by Donald Trump. For example, if Trump orders an attack on a Middle Eastern country that could easily escalate into a direct confrontation between American and Russian forces, causing oil, gold and interest rates spike dramatically higher over night. I hope not.

Barring an orange swan event, chances are good that indices push higher between now and early summer to challenge their recent all-time highs and much higher.

After rallying strongly earlier in the week, SPX sold off on Thursday and Friday. By the end of the week, SPX closed below its 50 D-SMA. Chances are good; however, that SPX rallies this coming week to test important resistance levels at its ARL, TDL and even PDL-1. 

SGS advanced significantly last week and it is close now to change its status from "NEUTRAL" to "LONG".  SGS is signaling higher prices ahead.

Supports and resistances for SPX for the upcoming week are shown above.

My Plan

I'm still planning to open my third and final long position in QQQ sometime this coming week.

Current Long-Term Portfolio (2018)
Past Long-Term Portfolios (2008-2017)



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.