Sunday, June 19, 2022

A Bottom Or The Bottom Is Near

SGS  Market Timer Status:  SHORT 
SHORT as of the close of Friday Jun 03, 2022
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must

There is a good chance that indices reach a bottom or the bottom for the bear market sometime early this week.  Likely support levels that could be tested this week for SPX, NDX, and RUT are listed  below:

SPX:   3,500 (SPY:    350, 50.0% Fib. Retracement)
NDX: 10,500 (QQQ: 260, 61.8% Fib. Retracement)
RUT:  1,500 (IWM:  150, 61.8% Fib. Retracement)

SGS Market Timer

As of the close of last Friday (6/17), the value of SGS was calculated to be -1287 and the status of SGS remains SHORT. 

S&P 500 Support And Resistance Levels

Support and resistance levels for SPX for this week are shown above.  I still expect the Fed to intervene in one way or other to shore up indices as selling continues.  I thought once SPX reached 3500, we would see the Fed rushing in but after Powell's new conference last Wednesday, I don't think the Fed intervenes unless either bond spreads or a big hedge fund start to blow up.  Without Fed's intervention, SPX could sell further (blue arrows) between now and this fall to reach its PUL-1 (historic uptrend) around 2550.

My Plan

I am planning to close my SDS positions sometime this week as SPX tests 3500.


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.