The State of the Trend

By: George Krum | Sat, Jun 16, 2012
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Last week we concluded that although market internals haven't reached overbought levels, the indices will have a hard time sustaining their momentum and will stall at the strong 1340-1360 resistance band. After gapping up and being rejected from that zone on Monday, the SPX managed to barely break above 1340 during the last hours of trading on Friday.


Source: OT Fibonacci

Current market internals reflect uncertainty ahead of the Greek elections. They are stuck in the middle of their range, thus giving equal weight to a possible breakdown or breakout:

The weekly Trend Oscillator is in a similar position, closing the week just slightly above the zero line:

Weekly Hurst channels continue to be mixed, while the daily channels are up and still identify 1360 as resistance:


Source: OddsTrader

In summary, since the SPX managed not to close below the pivotal 1276 level, identified by us as critical support at the beginning of April, bulls have been in control and will remain so as long as the index doesn't drop below 1313.

 


 

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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