Monday, December 26, 2022

A Roller Coaster Ride To Nowhere

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 4818).

My Plan

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.