Sunday, March 1, 2020

Selling Is Done, A Sizable Bounce Is Likely

SGS  Market Timer Status:  SHORT 
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

sgs-st Market Timer Status: 

sgs-st is a Short-Term (hours to days) Timer

In the last 20 years, there have been only 6 instances, including last week, that SPX had dropped more than 10% in a given week (low of the week compared to the close of the previous week). Also, on the average, SPX had rallied 7.6% (close of the week compared to the high of the following week) in the week immediately following the sell-off. There is a good chance that SPX rallies around 7% to 8% from its Friday's close. A 7.5% rally for SPX, gives 3175 as a target for this week's probable high which is also near the 61.8% Fibonacci retracement level of the sell-off from 3393 to 2855.
SGS declined substantially last week and confirmed major indices selling off.  On Friday, the value of SGS dropped to -359 and SGS changed its status from LONG to SHORT.  Longer-term, that is bearish.

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

My Plan

sgs-st is stilll neutral and 
I'm in cash and waiting for the next sgs-st signal.

Current Long-Term Portfolio


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.