The State of the Trend

By: George Krum | Sat, Nov 12, 2011
Print Email

Last week we focused on the tug-of-war between bullish sentiment, driving markets up since October 7th, and the uncertainties associated with the European financial crisis and Italy in particular. It should come as no surprise that under these conditions there were large swings in both directions. After all was said and done however, we were left with an inside week, and the prerequisites for a continuing volatile environment remain in place.

The SP500 traded within the Hurst channel which, by the way, does a great job at measuring market volatility. This is one of the tools easily accessible through the OddsTrader app.

Another useful tool is the Risk/Reward Oscillator (at the bottom of the chart), which did a great job at identifying overbought/oversold opportunities even in a rangebound market.

It's interesting to note that Louise Yamada has now recognized what I have mentioned regularly in these weekly updates since early October: the similarities between the current state of the trend and what transpired in 2008.

The outlook hasn't changed much since last week. The SP500 remains within the consolidation zone marked in yellow, trapped between support/resistance zones.

Weekly support/resistance levels, courtesy of OddsTrader are 1289 & 1314, and 1212 & 1188, pivot line at 1252.



George Krum

Author: George Krum

George Krum

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.

Copyright © 2011-2017 George Krum

All Images, XHTML Renderings, and Source Code Copyright ©