SGS Market Timer Status: SHORT
SHORT as of the close of Friday April 8, 2022
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must
Since late 2008, when Ben Bernanke put Modern Monetary Theory to work to save the US and global economy, every multi-month rally in indices was caused by implementation of a new round of "Quantitative Easing" (QE) by the Federal Reserve. Conversely, with the exception of the decline due to Covid-19 in 2020, every multi-month sell-off in indices happened between the time that the current round of QE ended and a new round QE started. So if all of that QE (from Oct 2008 to Feb 2022, with mother of all QE's in 2020) caused the dramatic rise in indices, now that there is no more QE, and in fact the Fed is about to start a Quantitative Tightening (QT) program in June while raising interest rates, it would be silly to expect indices to go higher.
There is an excellent chance that indices continue to go lower until the Fed reverses course and, at the minimum, stops its QT program all together.
SGS Market Timer
As of the close of last Friday (5/13), the value of SGS was calculated to be -927 and the status of SGS remains SHORT.
S&P 500 Support And Resistance Levels
My Plan
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
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.
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