The State of the Trend

By: George Krum | Tue, Jul 5, 2011
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Two weeks ago the prevailing sentiment was decidedly bearish, but given the close proximity of key support levels, the advice was to exercise patience and let the market tip its hand. And to the surprise of all those who saw the sky falling, the SP500 gained 5.6% in one short week.

Now, all of a sudden, sentiment is all bullish and the sky is the limit.

And maybe for a good reason, at least for awhile.

All three timeframes, daily, weekly and monthly, show that the uptrend is intact:

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The Q's registered an even better performance, advancing 6.5%, and I'll switch over to them for further guidance. As the monthly chart below shows, QQQ is bumping against strong channel resistance at 59-60. A break above that level will send a strong message that the SP500 rally has indeed more upside left.

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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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