The State of the Trend

By: George Krum | Sat, Dec 3, 2011
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I guess I wasn't the only one who recognized that the market was in serious trouble at the end of last week. Central banks around the world stepped up to the plate in order to avoid another Lehman disaster and market meltdown. Whether they will succeed this time around is open for debate. I have no doubt, however, that the Fed would like to see the SP500 following its current trajectory for many months to come:


A closer look at the daily chart reveals that the SPX finished the week with a question mark - tagging in the same session both the uptrend and downtrend line:


Moving over to intraday data, I'll repeat what I noted last Monday morning on my blog, namely, that the market is likely embarking on an Oct. 4th type melt-up mode.

That has proven to be the case so far, and SPY finished the week precisely on target:


There is a lot more to say about sentiment, market internals, channels, cycles, etc., and I regularly cover these topics on my blog. For the time being, however, it seems that those at the helm are feeling the heat and are getting serious about trying to avert a repeat of the 2008 market crash. Following the indices with the above weekly, daily and intraday chart framework in mind will tell us early on whether they are succeeding or not.



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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