The State of the Trend

By: George Krum | Mon, Jun 10, 2013
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Despite a 45 point rise from the SPX low set on June 6th, market breadth is just starting to rebound from oversold readings. This bodes well for the short term market outlook, as internals need at least a few more days to reach overbought levels:

The decline which started on May 22nd resulted in a steep downsloping channel whose upper boundary was tested on Friday. A continuation of the breakout should result in a retest of the recent high:

The weekly and monthly trends of the major averages were never challenged, and bulls remained in control throughout the decline:

As we've mentioned before, the seasonal outlook is for choppy trading until the end of August. So far the SPX is showing a 73% correlation to its weekly seasonal chart which can easily be accessed here, and an even stronger correlation with the bullish decennial cycle, which we mentioned in this column in January. At this point, we see no reason for these relationships to break.

 


 

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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