The State of the Trend

By: George Krum | Mon, Sep 5, 2011
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Two weeks ago, the conclusion was that market internals are oversold, and there should be a bounce in the context of broken monthly, weekly and daily uptrends.

This week, market internals are oversold once again,

and the SPY finds itself in the middle of a perfect bear flag:

Should the symmetrical movement of the index follow its natural course, we should expect a bounce in the vicinity of 114, or 1140 basis the SPX. A breakdown from the flag gives downward projection in the 980-1000 area.

Given the oversold nature of market breadth indicators, however, a short-term, countertrend bounce is not excluded. In which case, the 1185 level should be monitored closely for signs of sustained strength.

From a channel point of view, the three timeframes we follow (daily, weekly and monthly) show that the downward support zones have not been reached or breached yet:

 


Coming soon: the iPhone app is almost done, and will soon be submitted to Apple for review. Keep an eye on Twitter@citdates.

 


 

George Krum

Author: George Krum

George Krum
www.citdates.blogspot.com

George Krum is the author of the "CIT Dates" blog, and the following apps:

OddsTrader - combines the power of Hurst Channels with proper risk and position size management. For a web version see OT Signals below.

Gann 9 - the only financial app that allows users to effortlessly apply the legendary W.D. Gann's tools and methods for trading (including the Square of 9).

OT Trend - helps you quantify and forecast the seemingly random ebb and flow of stock, index or mutual fund movement.

OT Fibonacci - automates the process of applying Fibonacci numbers, ratios and time series to any security.

OT Seasonal - allows you to perform seasonal analysis on practically any security from around the world, and to build long-term forecasts and models.

OT Pairs - pairs trading, one of the most successful hedge fund trading strategies, is now available on your smart phone.

OT Pivots - combines the power of pivot lines with cycles to provide you with concise technical analysis and powerful trading signals.

OT Signals - a web app accessible from any browser, tablet or pc. It gives buy/sell/hold ratings for any instrument from around the world, and defines the trend and support/resistance levels.

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austrian-money-supply/