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The State of the Trend

By: George Krum | Saturday, February 23, 2013

The ramp up last Tuesday gave traders a better short entry at 1519. And, as we anticipated from our analysis of market internals, the down swing lasted two days. The SPX bounced off support at 1500, and ended the week in the sweet spot of the current uptrending channel. In fact, Friday's range defines perfectly the two key levels to keep an eye on at the beginning of next week:

The DJIA remained on trend, zeroing in on our next target level:

The Qs bounced off support as well, and remain firmly within the January box:

Market breadth declined for the week, but finds itself at levels from which it has rebounded many times in the past:

The same can be said about the Bull/Bear index:

In summary, the trend remains up for the three indices discussed above in all three time frames: daily, weekly and monthly. While most dismissed the Fed's threats to put an end to QE as just crazy talk, very few expect that Congress, in their ultimate collective wisdom, will come up with any real, meaningful solutions. Therefore, our expectation is that the next downdraft will be triggered by that wild card.

 

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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