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.
Imagine.
Potential Topping Area (by Springheel Jack)
We've reached a potential topping area on SPX for both the current move up and potentially for the wave C top if this move from the October lows has in fact been a bear market rally. If SPX was to top here or close to here then that would deliver a double top from the October low, with the November low as the pattern neckline, and if SPX peaked yesterday that would deliver a target range for the next move down in the 1020-5 area. If SPX goes a few points higher that target would drop a few points as well. Here's how that looks on the SPX daily chart:
Why a Short-Term Decline is Highly-Probable
We witnessed another upside gap today and in my opinion the bears were handed a gift, at least for the short-term.
Most of the highly- liquid ETFs I follow here at Crowder Options have pushed into a short-term overbought extreme, with several actually reaching a very overbought extreme.
Typically, when we see this type of price action, that is an upside gap into overbought to very overbought territory at strong overhead resistance, a short-term reprieve is to be expected. However, if you recall, I expected to see a reprieve after last Tuesday's large upside gap, but the gap in the tech-heavy Nasdaq 100 (one of my positions at the moment) has yet to close.
Treacherous Tuesday (by BBFinance)
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!
