The State of the Trend

By: George Krum | Sat, May 4, 2013
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Last week we were expecting the indices to continue marching up for the usual end-of-month rally, and for market breadth to complete a downward cycle swing. Market breadth bottomed out on Thursday and the cyclical turnaround, with the help of a frendly jobs report, propelled all the indices above their short-term resistance on Friday. In the process, the DJIA and SPX made new all-time highs:

But even more importantly, the QQQ managed to break above and rebound from the 50% retracement of the 2000 high:

Although the two day upthrust seems to be exhausted for the moment:

Market breadth just started bottoming out, and has several more days before it reaches overbought levels:

The first week of May ended with a bang, but the markets are entering a seasonally slow period. Once again, quantitative easing will square off with the well entrenched "sell in May" market wisdom. We believe that the next chart will help you stay on the right side of the trend:


The apps below will help you keep track of market fluctuations, and in making anything from intraday to multi weekly trading decisions.



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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