Daily Archives: August 6, 2017

One Possible Path

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Even though I’m kind of in the business of trying to predict the future, the one topic that seems to get me face-slapped most easily here on Slope is when I try to do just that: in other words, those times when I try to paint with a broad brush what could be coming in the future. In spite of it, I’m going to do it anyway, and offer up one possible scenario for the months ahead in our world and, thus, equity markets. As is so often said here, “anything could happen”, but just for the hell of it, let’s work with this possible path forward:

(1) The Top Is In: OK, OK, stop yelling. Remember, we’re just playing with one potential scenario. Let’s start off with the assumption that my much-maligned Fibonacci target of 2486.95 was successfully reached last month (intraday high: 2484.04, 99.99%+ of the target price) and that the insane stuff you are reading from commentators such as the bull market will last “forever” and (from Yellen) how we’ll never see another financial crisis in our lifetimes is the very stuff which precedes gargantuan turning points.

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Markets Love Big Round Numbers

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Just a “heads up” on the following Major U.S. Indices:

  • Dow 30 above 22,000 (keep an eye on the Dow leaders and laggards for clues to continued strength or weakness)
  • S&P 500 approaching 2500
  • S&P 100 approaching 1100
  • Nasdaq 100 approaching 6000 (has just over 100 points to go, but keep an eye on the powerhouse FAANG tech stocks, which are currently stuck in consolidation mode, for either breakouts or breakdowns)

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