The State of the Trend

By: George Krum | Sat, Oct 12, 2013
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The Vix system, which alerted us to a 100+ SPX points drop two weeks ago gave a long signal capturing a 30 point move to the upside:

SPY Weekly Chart
Chart courtesy of OddsTrader

The weekly market breadth indicator is no longer overbought and has droped to levels which precede sustained upside moves in the market:

SPX daily Chart
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Despite the obvious uncertainties regarding a deal being struck on time in Washington, there are a few other troubling signs remaining. During the recent sell-off, SPY and SPX broke below the ascending channel in effect since November '12, which puts us on a ascending wedge watch:

S&P500 Chart
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While the SPX and the DJIA have plenty of wiggle room to the upside, the Russell 2000 index should be the first one to signal whether bulls remain firmly in control by leading the charge to new highs:

iShares Russell Chart
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GLD and SLV continue to be under pressure, with GLD taking a big hit on Friday and losing the 50% retracement level once again:

SPDR Gold Trust Shares Chart
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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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