Sunday, January 22, 2023

Higher Prices For Indices Are Ahead

SGS Market Timer Status:  LONG 
LONG as of the close of Friday January 6, 2023 
Previous SGS Status

SGS is a Long-Term (weeks to months) Timer
SGS Performance Data (New)
Why Market Timing Is A Must

Aging population and a dysfunctional immigration system in the US has brought on shortages of labor in just about every job sector. That was quite evident by the unemployment data that was released last Thursday, confirming again that the US economy is experiencing "full employment". That means the current labor shortage and hence wage inflation ("sticky inflation") is going to be with us for a while. With full employment and moderate inflation going forward for the next couple of years, there is very little chance of a recession; and with no recession on the economic horizon anytime soon, it's very likely that higher prices for indices are ahead.

SGS Market Timer

As of the close of last Friday (1/20), the value of SGS was calculated to be +96.  The status of SGS remains LONG.

S&P 500 Support And Resistance Levels

Support and resistance levels for SPX for this week are shown above.  A weekly close above PDL-1 this week would signal a high likelihood of more buying ahead and continuation of the rally.

My Plan

No chance since last week, I'm planning to wait for a weekly close above PDL-1 before opening more new long 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.