The State of the Trend

By: George Krum | Sat, Apr 27, 2013
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Based on our market breadth analysis we concluded last week that the major indices are due for a rebound. For easy comparison and follow up we'll start with the same two charts to show what transpired.

The SPX intraday chart shows that the index finds itself in a position reminiscent of April 11th:

SPX Chart

The market breadth chart shows that the rebound from last week's oversold levels brought it back within the overbought zone:

CIT Dates Chart

As one would expect, the Qs benefited from the improved market breadth and rejoined the uptrend:

QQQ Chart

The weekly SPX chart asks the same question from earlier this month: whether the index will continue within the same channel, or whether it will embark on a steeper ascent:

SPX Chart 2

Based on the evidence presented above, we expect that after a likely end-of month ramp-up, a sideways/down phase will follow.



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.

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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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