The State of the Trend

By: George Krum | Mon, Feb 6, 2012
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Last week we observed that the daily, weekly and monthly trends for the three major US indices were pointing upwards, and all of them were bumping against long-term resistance. After Friday's employment report, the trend in all timeframes remains unchanged, but the Q's are the only ones that were able to break above resistance. Judging by the monthly chart below, they have another 5% upside potential before reaching the next resistance level at around 65. In the meantime, 60 becomes an important resistance turned support level to watch:

As mentioned before, the resistance zone for the DJIA remains in the 12800-12900 area:

While the SPX has the most ground to cover in order to break above the 1370 level:

Following the relentless advance since December '11, and the opening gap on Friday, the weekly SPX has finally decoupled from the trend indicator and is approaching overbought levels historically associated trend changes. For next week, the overbought zone comes in above 1370, with the trend indicator currently at 1318.


The new OddsTrader Trend app gives users acces to these levels for every stock, index or mutual fund, along with some other useful information. Check it out.



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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