From a weekly seasonal point of view, the SPX is currently navigating the
most troubled waters:
And it is doing so remarkably well, considering that the trend remains up
in daily, weekly and monthly time-frames. Since the seasonally weak period
extends for a few more weeks, let's focus on the negatives.
The SPX made two lower highs and failed twice at the 1526 level. If history
is any guidance, the most likely interpretation is that the index has entered
another congestion zone:
While the DJIA made a new high, the Qs are being dragged down by the likes
of AAPL, which has just broken below support and is aiming for our next support
zone:
In summary, while the trend remains up for all the major indices, there are
a few clouds gathering on the horizon. The outcome will largely depend on
the ability of the SPX to remain within the 2012 channel shown above.
George Krum is the author of the "CIT Dates" blog and several
books available on Amazon.
Gann
9 - the only financial app that allows users to effortlessly apply
the legendary W.D. Gann's tools and methods (including the Square of 9).
OddsTrader - the
only financial app that combines the power of Hurst Channels
with proper risk and position size management, can be obtained from the Apple
store. The Android version can be found here.
OT
Trend - the second addition to the OddsTrader
app family, allows you to 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, anytime, anywhere.
Circle Us