The State of the Trend

By: George Krum | Sun, May 3, 2015
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Things haven't changed much since our last update at the beginning of April. The long-term trend remains up, although the SP500 hasn't been able to break out of the box it has been confined to since February '15.

There's a good chance that the SPX will make another run at new highs this week, since it has been making higher lows all throughout March and April, and the current upswing is starting from oversold levels, just as it happened on all previous occasions:

S&P500 Index Chart
Charts courtesy of OT Signals

Swing degree angles provide accurate support/resistance levels and price and time targets. Despite all the handwringing about QE, HFT, CB intervention and what not, when examined through the decades (going all the way back to the end of the 19th century), these same angles reveal that the markets have a tendency to move consistently along similar paths and to follow similar patterns.

Measured by the same historical standards, this bull run is getting long in the tooth and will also run its course. But first, several key short-term technical levels would have to be broken. Until that happens, no matter how much the bears cry wolf at every downturn, the bulls will keep possession of the ball.



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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