The SP500 finished week 6 of an expected 9 week sideways/up cycle right on
the uptrend line drawn from the October 2011 low, and within a couple of points
of channel support:
And while a lot of attention has been paid to the breakout from the daily
and hourly triangle, we want to shift our focus to the weekly triangle, since
a break outside of that will have more lasting repercussions for the trend
in the long run:
From that perspective, the SP500 closed exactly on support, and there is another
cluster of support levels at 1174. Interestingly, that's not far off weekly
and daily channel support (courtesy of OddsTrader
app) at 1170 and 1164.
While the SP500 continues to trade within the congestion zone we identified
several weeks ago, we noted on Wednesday that a shift in bullish sentiment
is taking hold:
Keeping in mind positive seasonality before Thanksgiving, however, the expectation
is that the sideways trend will continue for at least another week.
George Krum is the author of the "CIT Dates" blog and several
books available on Amazon.
Gann
9 - the only financial app that allows users to effortlessly apply
the legendary W.D. Gann's tools and methods (including the Square of 9).
OddsTrader - the
only financial app that combines the power of Hurst Channels
with proper risk and position size management, can be obtained from the Apple
store. The Android version can be found here.
OT
Trend - the second addition to the OddsTrader
app family, allows you to 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, anytime, anywhere.
Circle Us