Sunday, January 1, 2023

Forecasts And Outlook Will Make Or Break Indices

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

Starting in the 2nd week of January, companies report their 2022 fourth quarter earnings, and more importantly, their forecasts for 2023.  Rosy forecasts for 2023 by most companies would send indices significantly higher on the back of short-covering and dip-buying.  Not so rosy forecasts would send major indices much lower to test lower support levels.  For SPX, lower support levels are at 3500 and 3200.

SGS Market Timer

As of the close of last Friday (12/30/2022), the value of SGS was calculated to be -169.  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.  At this point there is a good chance now 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 rally from its Covid low (2191) to its all-time high (4818).

My Plan

Per my plan, last Wednesday I opened a new SDS position.  My plan is to add to that position should indices continue to go lower. 


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.