Sunday, March 19, 2023

Support At SPX 3500 Holds

SGS Market Timer Status:  SHORT 
SHORT as of the close of Friday March 10, 2023 
Previous SGS Status

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

According to an analysis by Economic Policy Institute, price hikes by corporations were the largest contributing factor (50%) to year over year inflation in 2022.  Other contributing factors were labor (20%) and pandemic related supply shortages (30%).  So if price gouging and greed by big corporations is at the heart of the current inflation, then how raising interest rates is to bring inflation down?  At best it would reduce labor costs for companies as workers lose their jobs and have to settle for the same jobs at lower wages.  Maybe that is precisely the Fed's aim and their plan to bring the labor inflation down to "2%" by slowing down the economy and increasing unemployment.  It seems the Fed couldn't care less about how much more we're paying for gas, eggs, meat, etc. all due to price gouging by companies.

Regardless of how the Fed manages to land the economy, corporations via price gouging will continue to post record profits in 2023.  Equity prices for major companies will go higher and indices will turn and start to rally, increasing the likelihood that  the support at SPX 3500 holds this year.

SGS Market Timer

As of the close of last Friday (3/17), the value of SGS was calculated to be -491.  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.

My Plan

Per my plan I closed all my long positions (except for the two severely underwater and luckily small crypto positions) last Friday.  My plan is to stay in cash for now and see how the current banking crisis settles.


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.