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The State of the Trend

At the end of last year we observed that following the December FED meeting the SPX is poised to burst out of the '09 weekly channel. Liquidity peaked on the last day of 2013:

SPX Chart
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and Friday's sell off brought the index back within the weekly channel with first support at 1750:

SPX Chart 2
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From a sentiment point of view, weekly bullish sentiment is testing the 75% level which hasn't been violated since January '13. A further deterioration in bullish sentiment should coincide with the SPX testing the regression line:

SPX Chart 3
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In the sentiment department, we also monitor the VIX which gave us a timely early warning signal preceding the 50+ point drop:

VIX Chart
Chart courtesy of OddsTrader

GLD is showing signs of reversal but will remain in a vulnerable position until it manages to climb and stay above the 50% retracement level:

SPDR Gold Trust Weekly Chart
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SLV didn't fare as well, and remains confined within both downtrend channels:

iShares Silver Trust Weekly Chart
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