The State of the Trend

By: George Krum | Sun, Apr 22, 2012
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This week we'll focus on the SPX daily chart which clearly shows that the index has painted itself into a corner. The inevitable break in either direction on Monday will likely set the tone for the rest of the week:

The fibonacci retracement levels from the October and November '11 lows almost perfectly coincide with chart support levels at 1360, 1340, 1320 and 1290, while resistance remains at previous highs at 1392 and 1422.

A closer look into market internals reveals that they have improved considerably since the April 10th low and, actually, find themselves in overbought territory. This limits the risk of an upside breakout or sustained rally for the coming week.

The weekly SPX remains below the pivot line at 1396 which suggests that the correction isn't over yet:

SPX

 


 

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 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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austrian-money-supply/