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.
Clean Breakout by Lennar
The Threatening Breakout
Well, after all the good reasons why the market would be down this week, it just isn't happening. 2012 appears to be the year when everything goes up a little, day after day.
The Russell 2000 has been threatening to break out. The level at 773 appears to have tremendous sway over this index, having represented firm support for a long time and, most recently, resistence. A clean break above this level might open the floodgates. Be wary.
Dead Cat Bounce? (by Springheel Jack)
We've been having a lot of days where the low has been made about 10.30 and equities then rose for the rest of the day. Yesterday broke that with a bounce that petered out and then drifted downwards until the close. That doesn't mean that we've seen a top, but it is a change in the character of the market. On ES we have broken down from last week's rising channel into a shallower one. A break below channel support in the 1280 area would look immediately bearish. Channel resistance is in the 1308 area:
Major Indices Update (by Strawberry Blonde)
The support and resistance levels for the Major Indices noted in my post on January 10th still apply.
In that post, I also made reference to a 10-Day 30-Minute chartgrid of the YM, ES, NQ & TF and said that any repeated attempts to advance convincingly beyond the highs of the first week in January would need to be accompanied by higher volumes. The horizontal white line on the updated chartgrid below represents that week's high. We can see that:
- + the YM has struggled to stay above that level on building volumes, and today's advance took place in overnight trading on very low volumes…price fell back to the range high which is near-term support
- + the ES has managed to stay above this range high, for the most part, on building volumes, and today's advance also took place in overnight trading on very low volumes…price is trading just above the 200 sma (pink) and last week's Volume Profile POC (yellow horizontal line) on this timeframe
- + the NQ has also managed to stay above this range high, for the most part, on building volumes, and today's advance also took place in overnight trading on very low volumes…price is trading just below its 50 sma (red)
- + the TF has also managed to stay above this range high, for the most part, on building volumes, and today's advance also took place in overnight trading on very low volumes…price is trading below both moving averages, just above last week's Volume Profile POC, and just above the 10-day Volume Profile POC (red horizontal line) at the right edge of the chart
