The State of the Trend

By: George Krum | Sat, May 5, 2012
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Two weeks ago, we posited that market internals had improved considerably since the April 10th low, and were in overbought territory. This, in our opinion, limited the chances for an upside breakout or sustained rally.

This week the pendulum has swung in the opposite direction. Market internals are approaching oversold levels in both the medium:

and in the short term:

SPX weekly has fallen below the pivot line once again. This gives bears only a slight edge for the time being, since both the daily and weekly trend is flat for the moment:

Support levels remain the same as two weeks ago -- 1360, 1340 and 1320. Resistance is at 1415 and 1422:

With the soon to be released OT Fibonacci app you will be able to automatically keep track of these levels in different timeframes.



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