Sunday, May 26, 2019

SGS Market Timer Is NEUTRAL

SGS  Market Timer Status:  NEUTRAL 
NEUTRAL as of the close of Friday May 24, 2019
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

After selling-off around 20% late last year, SPX rallied to a new all-time high (2954) on May 1.  SPX is very likely in a 40% to 60% retracement of its latest up leg (2346 to 2954).  I expect SPX to find a bottom around 2700 in the next couple of weeks.

A conflict with Iran would be of course a game changer.  In that case, I expect SPX to correct substantially, my guess would be at least 50%.

SGS declined last week and closed at -7 on last Friday. SGS status changed from LONG to NEUTRAL.

Support and resistance levels for SPX for this week are shown above.

My Plan

Anticipating the change of SGS status from LONG to NEURAL, I closed all my QQQ positions last Tuesday. SPX is about to test its 200 D-SMA around 2775 on Tuesday or Wednesday. If SPX breaks through its 200 D-SMA and closes below it, I would open first of two positions in SDS.  I expect SGS to turn from NEUTRAL to SHORT by the close of this 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.