The State of the Trend

By: George Krum | Sat, Oct 19, 2013
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Last week we noted that the Vix and the weekly market breadth indicator point to a continued upward move for the major indices. All of them, with the exception of the DJIA, made new highs:

GSPC Chart
Chart courtesy of OddsTrader

We also shifted our attention from the upward sloping channel to the ascending wedge pattern which became effective after the SPX broke below channel support. At the end of the week, SPY and SPX traded to the top of that wedge:

SPX Daily Chart
Larger Image

Given the fact that short-term market breadth indicators are getting overbought, while the weekly readings are in neutral territory, we expect the major indices to enter a brief period of consolidation.

GLD and SLV were able to regain some of the losses from the previous week but still remain in a downtrend, with gold trading below the 50% retracement level:

Gold Chart
Larger Image

 


 

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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