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The State of the Trend

By: George Krum | Saturday, April 12, 2014

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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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.

Copyright © 2011-2014 George Krum