Sunday, December 12, 2021

Recent Lows Are Very Likely Tested Soon

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 closed at a new all-time closing high while other major indices closed at lower highs.  That "bearish divergence" by other major indices was especially pronounced in case of RUT, which in itself is even more bearish, signaling that the rally since early December lows is not sustainable.  At this point, there is a good chance that Friday December 3 lows are tested this week and very likely fail.

SGS Market Timer

As of the close of last Friday (12/10), the value of SGS was calculated to be -132 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

Per my plan I closed my long positions last Monday.  For now, I'm staying in cash except for two small crypto 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.