Sunday, August 16, 2020

Critical Week Is Ahead

SGS  Market Timer Status:  LONG 
LONG as of the close of Friday May 22, 2020
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

As shown on the chart above, SPX failed last week to overcome its all-time (3393) resistance.  That is bearish and increases the odds of major indices entering into an extended period of consolidation or correction.  

How SPX trades this week is critical.  If SPX sells off and closes below its lower boundary line of its price channel, then further selling to test its 50 D-SMA and 200 D-SMA would be more likely.  If SPX rallies pass its all-time high and the upper boundary of its smaller price channel however, then a move higher to test the upper boundary of its larger price channel (around 3700 sometime next month) would be more likely.
As shown on  the chart above, SGS is long but heading lower, bearish.

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

My Plan

Last Monday I closed my long position in QQQ, and per my plan, I opened new positions in SPY, IWM, GLD, and SLV on Tuesday.  This week, I'm letting the market make the first move.  If indices head higher, then I would open a new long position in QQQ (remaining 15%).  Otherwise, I would very likely close my IWM and SPY long positions.


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.