The State of the Trend

By: George Krum | Sat, Mar 24, 2012
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Once again, despite a mid-week sell-off, the trends of the three main US indices (DJIA, NDX and SPX) remain up in all three time frames - daily, weekly and monthly.

We mentioned previously that whether the indices move up, down, or sideways, market internals constantly move between overbought/oversold levels. This upcoming week we'll have a good chance to test this hypothesis once again.

As the chart below shows, market internals have been deteriorating until last Thursday, and are just turning up:

OEX Plus Barometer

Judging by the past history of this indicator, overly aggressive bears should be careful not to overstay their welcome. 1370 remains the pivot level to watch for signs of escalating trouble for weekly SPX (courtesy of Oddstrader app):




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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Source: The Contrarian Take