Thursday 19 June 2008

End of Trend Signal and Bond Market Analysis

More Professional accumulation today around the 1,335 level - and we finally got the "End of Trend" signal on the 135 minute time frame (primary swing trading time frame).

Emini Hilbert Sine Wave Image

"End of Trend" Signal (Emini 135 minute)

The "End of Trend" signal sometimes marks the absolute low (or high) almost perfectly - particularly when it coincides with a cyclical turn in the higher time frame (actually 2 time frames higher). However, in this case the weekly Hilbert Sine Wave is some way off making a cyclical low and so we're probably going to enter a period of cyclical or range trading - as opposed to starting a strong trend move up.

Read the original article about "End of Trend" setups and multiple time frames here.

Final chart shows the Bond Oscillator which measures over- and under-valuation of the equity markets compared to Bonds. The Bond market appears to have found support but is not yet in an uptrend. The chart below shows the fundamentals might be starting to line up for a bullish medium term scenario.

Bond Market Valuation Image