A Market Timing Report based on the 1-31-2014 Close published Sunday February 2nd, 2014
The SP500 Index (SPX, SPY) has stabilized after testing near the second level of support, which is 1767.99, the December low. I believed the market would hold this support on Friday, so I bought the 2X version SSO at the open and sold for a decent profit at day’s end. So you can trade those sorts of moves, but be careful about investing in them in too big of a way. Why? Because these support levels are pivot points. The market can turn up or down from here. Although I’m leaning toward an upward bounce from here before the next major move down, I could be wrong, most importantly, because some blow up could occur in the emerging markets to throw off the course of US market sentiment.
Next support is at about 1743 as of the close Friday. (intersecting red lines on chart)
SP500 Index Chart:
I discovered an interesting phenomenon in my sentiment coverage this week, namely, that of “time compression.” I covered my thoughts on investor sentiment for free subscribers by posting it last Thursday. Be sure to read it. It lays out my thoughts about the trajectory of the market over the next few weeks. You can access my thoughts after getting the password here: Free Subscription to My Newsletter and access to my latest comments I’ll send you back the password to the access page and the monthly newsletter in the same email.
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Look for updates on the main chart tracking pages this week as I feel they are needed and comments via Twitter.
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