Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
The sea of red is a delight to the eye, but we’re not out of the woods yet. Since the market bottomed a month ago, we’ve been banging out a series of higher lows. Mercifully, we have not had higher highs; instead, it’s been stalling out below its price gap. But the point is that we need to take out that most recent “higher low”.
Jeez, what an insane day. These bulls just won’t let it go, will they??
Chart after chart shows the same thing: the Fibonacci support being defended, even in the face of massive selling in advance of the CPI. So here we see the S&P 500 futures with the Fibonacci (red line) represented rock-solid support, with the brief earlier exception in the box………
Tick-tock. All eyes will be on the CPI. Long- and medium-term, I’m not the least bit worried. Short-term, yeah, I’m kind of cautious. Which probably guarantees calamity.
SPX is retracing and is likely to open today below the monthly pivot at 3867 and the weekly pivot at 3853. That opens a possible backtest of the daily middle band, currently in the 3812 area, and a close below and conversion of that to resistance would open a possible 2022 low retest.
Am I expecting to see that directly from here? No, but it is a possibility.
SPX daily BBs chart:
We’re just marking time at the moment. An hour before the open on Wednesday is when the real insanity starts for three solid days. That’s when earnings season begins in earnest and an avalanche of crucial economic reports comes out (with the belle of the ball being the CPI).
