Sunday, August 20, 2023

Correction Has Very Likely Run Its Course

SGS Market Timer Status:  SHORT 
SHORT as of the close of Friday August 18, 2023
Previous SGS Status

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

As of the close of last Friday, SPY has corrected around 5% from its recent high in late July.  As shown on its weekly chart above, SPY has also retraced back 33% of recent up-leg which is quite within the 40% retracement range typically seen for a powerful bull leg. 

The correction has very likely run its course and indices will resume their rally to challenge their all-time highs later this week.

SGS Market Timer

As of the close of last Friday (8/18), the value of SGS was calculated to be -238.  The status of SGS changed from NEUTRAL to SHORT.

S&P 500 Support And Resistance Levels

Support and resistance levels for SPX for this week are shown above.  

My Plan

No change since last week, I'm watching price charts and if recent highs are breached, my plan is to bring my remaining cash (10%) in and buy QQQ.


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.