The State of the Trend

By: George Krum | Sat, Jun 4, 2011
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Last week's target band for the SPX range, based on Hurst Channels, was 1344-1355 on the upside, and 1294-1306 on the downside. The high of the index came in at 1345, and the low at 1298.

The conclusion was that for the daily uptrend to continue, SPX needs to claw its way back within the uptrend channel. That did not happen, and the index continues to trade within a downward sloping channel with immediate support at the 1294-1297 level.

Trends Analysis
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The damage can be seen on the weekly chart as well.

Trends Analysis
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Interestingly, however, the same weekly chart shows that the weekly trend is still intact. For that trend to be broken, the SPX needs to drop below 1233-1230. But before that, however, SPX first needs to break below channel support at 1283 and 1276.

Considering the short-term oversold nature of this market, this does not appear likely for next week.

Trends Analysis
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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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