• 12 hours American Households Are Absorbing The Costs Of The Trade War
  • 18 hours Security Breach Reveals Crypto Mining In Ukrainian Nuclear Plant
  • 1 day Bankruptcy Is The Only Choice For Many Retailers
  • 2 days Are Copper Naysayers Missing The Big Picture?
  • 2 days Jerome Powell's Impossible Challenge
  • 3 days Economists Call For Recession In 2021
  • 3 days Hong Kong Billionaire Loses Big On Canadian Energy Play
  • 3 days Trade Tensions Weigh On South Korea, Japan Relations
  • 4 days Lithium Hype Can't Live Up To Supply Realities
  • 4 days Tesla Scrambles To Salvage Its Stumbling Solar Business
  • 5 days Why Silicon Valley Is Moving To Toronto
  • 5 days Hong Kong Residents Are Fleeing To Taiwan At A Record Pace
  • 5 days Trickle Down Tax Cuts Aren't Helping Bolster GDP Growth
  • 5 days Wealth Gap Widens Between Baby Boomers And Millennials
  • 6 days How Investors Are Playing Uncertain Markets
  • 6 days Demand For Cash Is On The Rise
  • 6 days The Best Way To Ride The Gold Rally
  • 7 days Corn Industry Reeling After Shocking Ethanol Decision
  • 7 days Gold Miners Eye Further Upside
  • 8 days Alibaba Exec Sets Record With $3.5 Billion Brooklyn Nets Purchase
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

The State of the Trend

Despite all the geopolitical turmoil in the last month, and the Fed's continued reduction in asset purchases, the trend for the major averages remains up in the weekly and monthly time frame.

Although the averages have stalled below the highs made at the beginning of March, they all remain above key first tier support levels (1850 for the SPX, 88.5 for the Qs, and 16,000 for the DJIA):

Dow Jones 30 Weekly Chart
Larger Image

As long as these levels hold and don't become resistance, the technical outlook will remain positive.

Bullish sentiment has weakened but still remains above 75%. That level was breached only once during the last two years, and it happened to coincide with the February '14 correction:

Bullish Sentiment versus SPX Chart

You can track some of our market breadth and liquidity indicators on our brand new site (still in beta): otsignals.com

Gold was able to overcome two technical hurdles by breaking above the first downsloping channel and the 50% retracement level of the '08 - '11 bull run. That level is in the process of being retested as support, and needs to hold in order for the technical picture to keep improving.

SPDR Gold Trust Shares Weekly Chart
Larger Image

Silver didn't fare nearly as well as gold, and had a much more modest run. There is very little in terms of technical support that keeps it from retesting the July '13, December '13 and January '14 lows:

iShares Silver Trust Weekly Chart
Larger Image


Back to homepage

Leave a comment

Leave a comment