The State of the Trend

By: George Krum | Sat, Apr 12, 2014
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Today we'll revisit two charts we first published last February.

The monthly SPX chart below allows for easy comparison between the last three SPX rallies. Gann angles do a very good job of showing the rate of ascend and acceleration in the second half of the '94 - '00 and current rally. We just added two trendlines in blue. The one on the right side shows that a drop below 1800 - 1790 will represent a violation of the current monthly trend line:

S&P500 Monthly Chart
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The daily SPX chart below shows the last six corrections since '13. Here the 1800-1790 is the level of the lower channel line which has provided support on several occasions so far:

S&P500 Daily Chart
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In summary, 1800 - 1790 are the key technical levels to watch for next week as a drop below them will signal a break in the daily, weekly and monthly SPX trend.

The equivalent level for the DJIA is around 15,600:

Dow Jones Monthly Chart
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Gold and silver have dropped below key support/resistance levels and have traded in a very narrow range for the last three weeks. The 50% retracement level remains our bullish/bearish fulcrum for GLD:

SPDR Gold Trust Shares Weekly Chart
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George Krum

Author: George Krum

George Krum

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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