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:  neutral 
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

twitter
opader@gmail.com

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.

on