Sunday, July 14, 2019

Earnings and Forecasts Will Make Or Break Indices

SGS  Market Timer Status:  LONG 
LONG as of the close of Friday Jun 14, 2019
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

Starting this week, markets get to assess Q2 earnings and forecasts for major companies listed on NYSE and NASDAQ.  Companies are widely expected to meet their earnings but if their forecasts for future earnings are not rosy, indices would correct between 5% to 15%.  The correction could become much deeper if the US-China trade negotiations fail or a new war breaks out in the Middle East.

SGS advanced last week, confirming new all-time highs in DJI, SPX and NAZ.  That is bullish.

Support and resistance levels for SPX for this week are shown above.  As shown above, there is a giant rising wedge on the price chart for SPX. That is bearish.

My Plan

I'm watching earnings and forecasts for several companies this week.  If all rosy, my plan is to open my first of two long positions in QQQ.

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.