The State of the Trend

By: George Krum | Sat, Nov 19, 2011
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The SP500 finished week 6 of an expected 9 week sideways/up cycle right on the uptrend line drawn from the October 2011 low, and within a couple of points of channel support:

Trends Analysis
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And while a lot of attention has been paid to the breakout from the daily and hourly triangle, we want to shift our focus to the weekly triangle, since a break outside of that will have more lasting repercussions for the trend in the long run:

Trends Analysis
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From that perspective, the SP500 closed exactly on support, and there is another cluster of support levels at 1174. Interestingly, that's not far off weekly and daily channel support (courtesy of OddsTrader app) at 1170 and 1164.

While the SP500 continues to trade within the congestion zone we identified several weeks ago, we noted on Wednesday that a shift in bullish sentiment is taking hold:


Keeping in mind positive seasonality before Thanksgiving, however, the expectation is that the sideways trend will continue for at least another week.



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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