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 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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