Sunday, June 2, 2019

SGS Market Timer Is SHORT

SGS  Market Timer Status:  SHORT 
SHORT as of the close of Friday May 31, 2019
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

As shown on the SPX monthly chart above, SPX closed for the month of May right on its M-DTL.  There is an excellent chance that selling that started in May continues into June, pushing SPX down to test its PUL-3 at around 2450.  A monthly close below M-DTL in June would be highly bearish, signalling significant more selling is head.   

SGS declined last week and closed at -91 on Friday. SGS status changed from NEUTRAL to SHORT.

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

My Plan

Anticipating the change of SGS status from NEUTRAL to SHORT, I opened my first two of four long positions in SDS on Thursday and Friday.  I expect an ugly week ahead.

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.