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.
As I mentioned in the morning, it was the third push up from the triangle and the pushes are now complete. Before today, the last seven trading days was a churn. The market was going round in circle and was making it difficult to find any direction. With today’s price action the direction of the market is becoming much clear. I will have to wait for tomorrow to decide whether I will close my short position on January 12 or 20. But either way I expect the market to go down from here. But may be one last attempt to retest today’s high will be made tomorrow.
It was just 11 point gain in SPX for the day. And I think the market will soon give back those 11 points and some more. The interesting thing to notice is how the sentiment changes. Before the year end, when I was talking about Santa Rally, there was general skepticism around. Not many believe that SPX will come close to 1300. And yet today, there is talk of SPX crossing 1400!
The Daily charts below show near-term support and resistance levels for the Major Indices, as follows:
- Dow 30: Support = 12400 and Resistance = 12500
- Dow Transports: Support = 5150 and Resistance = 5200
- Dow Utilities: Support = 450.00 and Resistance = 455.00
- S&P 500: Support = 1280 and Resistance = 1300
- Nasdaq 100: Support = 2360 and Resistance = 2380
- Russell 2000: Support = 755 and Resistance = 770
We are in a no man's land. Even though this symbol is specific to homebuilders, I think it nicely captures the Yin/Yang of the market at current price levels.