The State of the Trend

By: George Krum | Sun, Mar 11, 2012
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Just like last week, the trends of the three main US indices (DJIA, NDX and SPX) remain up in all three time frames - daily, weekly and monthly. And once again, they failed to break above the resistance levels identified in our monthly charts.

The lackluster $ flow, which gave us an early warning about an imminent pullback, didn't mislead. We saw the first signs of volatility returning to the markets, but still way below pre-2012 levels:

Despite the fact that the indices recovered their early week losses, $ Flow continues to be a source of concern, and is painting a negative divergence with price, suggesting that there wasn't much real buying the last couple of days:

Therefore, until the indices manage to break above their monthly resistance, the caution flag remains on, and we'll keep a close eye on the pivot line for signs of trouble:

 


 

George Krum

Author: George Krum

George Krum
www.citdates.blogspot.com

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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