SGS Market Timer Status: SHORT
SHORT as of the close of Friday December 9, 2022
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must
The US Economy is growing at a healthy rate of 3.2%
with a historic low level of unemployment (The Push). At the same time, the Federal Reserve is aggressively raising rates and reducing its balance sheet (The Pull). This Push and Pull is the reason why major indices have been on a roller coater ride to nowhere for the last few month. The ride to nowhere very likely continues for a while, maybe a long while.
SGS Market Timer
As of the close of last Friday (12/23), the value of SGS was calculated to be -335 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. No change since last week, at this point there is a reasonable chance that SPX tests the support that exist around its October low (≈3500). Should that support fail, then SPX would sell further to test 3200 level which is also 61.8% Fib. retracement level of the Covid rally (2191 to all-time high
I am planning to continue to stay in cash and open new positions sometime in the first week of 2023.
Merry Christmas & Happy New Year
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.