The State of the Trend

By: George Krum | Wed, Nov 23, 2011
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The pre-market gap down on Monday gave a strong indication that the congestion phase has ended, and a new multi-week downswing is beginning.

In the process, the SP500 closed within a couple of points of the 1164 support level identified last week-end by OddsTrader app. The new targets are 1140 and 1125, while the pivot line is at 1205.

Judging by the attached chart, the down leg could last until the end of December:

S&P Weekly Chart
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As one would expect, this is accompanied by further deterioration in bullish sentiment, with plenty of room to go to the downside:

SP500 vs Intensity
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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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