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:

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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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/