Sunday, February 28, 2021

Uptrend Is In Jeopardy

SGS  Market Timer Status:  NEUTRAL 
NEUTRAL as of the close of Friday Feb 26, 2021
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

As shown on the SPX daily chart above, SPX is about to break its uptrend line that has shouldered its rally since March 23, 2020.  Other major indices have either broken their uptrend lines or about to do so.  A breach of those lines signals that the rally since March lows is over and indices very likely are to retrace their gains lower.

At this point, before heading lower, there is a good chance that SPX retraces back around 50% of its recent decline and possibly test its PDL-1 around 3900.

SGS Market Timer

As of the close of last Friday (2/26), the value of SGS was calculated to be -32 and the status of SGS changed from  LONG to NEUTRAL.

S&P 500 Support And Resistance Levels

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

My Plan

Per my plan, last week I closed one of long positions in GBTC.  Now that SGS has changed to NEUTRAL, my plan is to close all long positions sometime early next week as indices retrace back their recent losses.


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.