The State of the Trend

By: George Krum | Sat, Dec 10, 2011
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Two weeks ago we observed that the composite weekly cycle is flatlining, and that the SP500 should bottom out soon. That proved to be the case, and the index is currently racing towards the top of the channel.

In order to get there, however, it will first need to break out above the inner weekly triangle:

By both acounts, the next resistance level is around 1300, while first support is at 1220.

From a sentiment point of view, bullishness is still prevailing, after dipping shortly below 50% a couple of weeks ago. Despite the constant barrage of news coming out of the financial sector and Europe, market internals continued their normal ebb and flow, and appear to be bottoming out, just in time for a year-end rally.

The CIT Dates calendar on my blog had December 8th marked as a potential turning point. The next date of interest is December 15th.



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.

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