Sunday, October 9, 2022

Another Run At SPX 3500 Is Likely This Week

SGS  Market Timer Status:  SHORT 
SHORT as of the close of Friday August 19, 2022
Previous SGS Status
SGS is a Long-Term (weeks to months) Timer
Why Market Timing Is A Must


SGS Market Timer

As of the close of last Friday (10/7), the value of SGS was calculated to be --585 and 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.  Again, there is a good chance that SPX gives up between 50% to 60% of its gain from its Covid low (2191) to its ATH (4818).  That puts SPX somewhere between 3500 (another 4% loss from Friday close) to 3200 (another 12% loss from Friday close) when this correction is done.

This week I expect SPX to test 3500.  There is a good chance that we see a sizable counter-trend rally back to ARL around 3800-3900 before selling resumes again.


My Plan

I closed 50% of my SDS position last Friday.   My plan is to close my remaining SDS position if and when SPX reaches 3500.  SDS should be trading around 56.65 if that happens. 



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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

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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