SPX and RUT both broke up yesterday, and on RUT that was a very definite break up which was nicely followed through. That wasn’t the case on SPX where the action after the break was uncertain, and that has continued overnight on ES. If we are to see a retest of the highs then I would not expect to see 48 retested before the highs were retested, and I’d expect to see ES hold above 1753 today. Initial support at the start of the trading day should be in the 1756-8 range, with support at the low yesterday at 1756, the 200 hour MA currently at 1757, and the weekly pivot at 1757.4. The 50 hour MA is currently at 1758.50 and ES has been trading below that for the last few hours, which is bearish while it lasts. ES 60min chart: (more…)
Slope of Hope Blog Posts
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.
A SOH Brother and His Inspiring Enterprise……………Respect!
Note From Tim Knight: The post below is an unusual one for Slope, as you will soon see. I would not normally publish a post such as this, but I am doing so principally out of gratitude to BDI who has provided dozens of outstanding submissions in the past (to say nothing of his constant presence in the comment stream). However, because the post does allude to a business opportunity, I want it made absolutely crystal clear that the presence of this post is in no way an endorsement. I have absolutely nothing to do with the business at all, nor do I vouch for it or potentially benefit from it in any way. I am simply letting BDI had some Sunday air time to talk about something he’s doing and what I think are the fairly interesting facts behind it. Caveat Sloper!
Bearish Engulfing Candlestick
Yesterday was a good start for the retracement that I’m expecting to see here, with a daily bearish engulfing candlestick on SPY. I am concerned though that there was no daily RSI 5 negative divergence at the high, and am wondering whether the high will need to be retested. Either way the engulfing candlestick, while a strong reversal signal, needs to be confirmed with more downside in the very near future. (more…)
FOMC Tomorrow
The big news this week is FOMC tomorrow, and that is a big risk factor for this week as it may well be that some Fed members are irritated that there is now talk that, with Yellen coming in to replace Bernanke, there is no prospect of QE being tapered in the foreseeable future and that it may well be expanded. A number of Fed members have significant reservations about QE still and it would be strange if they weren’t disturbed by such talk, which may prompt some hawkish talk tomorrow that in turn could well trigger a retracement. (more…)
Keeping It Real
I have been watching two trendlines with particular interest over the last few days, and have stated repeatedly here that a break up on either should confirm the bull case for a strong run up on equities into next year. Both have broken up in the last two days, and I am leaning very strongly here towards this bull scenario. I wrote up part of that scenario back on 30th June this year, when I gave a target in the 1965 area for the rising wedge from the 2011 low that had recently broken up and you can see that post here. (more…)
