Sunday, December 19, 2021

If 50 Goes, Next Would Be 200

SGS  Market Timer Status:  SHORT 
SHORT as of the close of Friday November 19, 2021
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

Last Friday, SPX tested its 50 D-SMA on its daily chart, shown above, and 50 D-SMA held.  There is a good chance; however, that 50 D-SMA gets tested again on Monday.  Should 50 D-SMA fail and SPX closes below it, then there would be an excellent chance that selling continues for the next couple of weeks as SPX moves to test its 200 D-SMA around 4300.  4300 is around 10% lower than SPX all-time high of 4743.  Based on what has happened in previous corrections since 2009, a 10% correction is when alarms start to ring at the Federal Reserve.

SGS Market Timer

As of the close of last Friday (12/17), the value of SGS was calculated to be -550 and the status of SGS remains SHORT.

S&P 500 Support And Resistance Levels

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

My Plan

I'm in cash except for two small crypto positions.  Should SPX close below its 50 D-SMA on its daily chart, I would open new positions in SPXS, TZA, and SQQQ (10% of total capital each).


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.