Hey Slopers! Here is my quick view of how I see $SPX right now.
We have had a almost non-stop rise since November, but I am seeing
the possibility of rising volatility for the rest of the summer.
We all know what happened to Tech last Friday and I believe that was
warning to the rest of the markets.
I have one of my favorite indicators with a fairly big divergence forming and
about to roll over. On top of that this rising wedge has narrowing price action.
We have violated the bottom trend line a couple of times already.
My thought is we are about to have a breakdown back into a big broadening triangle.
Obviously we can continue going up but here is my road map if we go below 2415 SPX.
With little support I do not think a retest of the lows in November are out of the question.
It is there that I believe would be the last great buying opportunity of this bull market that
could take it higher than most believe. 2016 marked the bottom of a 7 year ongoing cycle
in the markets. If correct we have 2-3 years left of the bull market and could see big
Happy trading Everyone!
I could use a bit of help, and I’m willing to pay for it (kind of).
A few days ago, when I sought to test out the new “sharing” feature in SlopeCharts, I did something I haven’t had a need to do in years – – – created a new profile. After all, if I wanted to test out a system meant for sharing, I had to have a second account to use. So I logged off my normal account, went to the home page, and entered the information to create a new account:
Yesterday’s setup favored the bears on the backtest of a cluster of resistance and fibonacci levels on NDX, today’s lows on SPX and NDX have so far been marginal higher lows against the current retracement lows and that has me wondering about possible triangles forming here.
There is now a very decent looking double top setup on SPX that on a sustained break below 2415.70 would look for 2384/5. That is in a strong support range which I have detailed in the notes on the chart. SPX daily chart:
Since I posted my article of May 28 regarding the five FAANG stocks, we’ve seen some profit-taking in all of them over the past week, most notably in Netflix (NFLX), as illustrated on the 1-Month and 1-Week percentages gained/lost graphs below.
Oft-cited short idea Brinker International is really starting to kick in now, with a beautiful gap down and a drop of over 6% this morning. Rest assured, I’m holding on to this one.
Soooooooo………how’s that border wall coming?
Errr, never mind. I’m eventually going to learn that politics isn’t worth discussing. As I’ve said before, I’m not the kind that sucks at the government teat, so I don’t get worked up (or really care that much) about the goings-on in D.C. I find it amusing, yes, but the notion of making some individual an avatar for myself and getting all riled when he is attacked……..no, I’ll leave that for dim minds. Some people consider themselves superior to others based on their beliefs, but humans are innately self-interested, and their politics reflect that.
So let’s talk about religion instead!
No, no, no. Almost as bad. Let’s look at a chart or two.
It’s heartening, of course, to see the stuffing being knocked out of the NQ. Friday and Monday morning started it all, and we had our Gartman “shall take courage to purchase, and we shall” rally, and then the “Trump is hosed” resumption. The real question, of course, will be whether we take out recent lows. I’ll let you guess which side I’m cheering for. (more…)