The State of the Trend

By: George Krum | Sun, Oct 23, 2011
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The SP500 continues to be in a sweet spot, where both the bullish and bearish scenario point to higher prices. The updated chart below shows that the index entered the target resistance zone. An upside breakout from the marked area will be a strong indication that the index will follow a different path:

SPX
Larger Image

In a short period of time, bullish sentiment has reached peak levels once again. This does not necessarily mean that a change in trend is imminent, but increases the likelihood that another consolidation is around the corner.

SPX versus % Bulls

On the daily chart, the SP500 is tracing an ascending broadening formation. The key support levels to keep an eye on are 1230, 1221 and 1200:

SPX

The weekly channel chart, on the other hand, pegs resistance at 1260 and 1290:

SPX

 


 

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 available from iTunes:

OddsTrader - uses the power of Hurst Channels to produce price and time targets, and combines them with proper risk and position size management.

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 - is the first mobile app that gives users access to one of the most profitable and time tested hedge fund trading strategies.

OT Pivots - combines the power of Pivot lines with cycles and automatic signal generation.

Gann 9 - is 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).

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