Slope of Hope Blog Posts

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On The Brink (by Springheel Jack)

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I'm going to post a lot of very bearish looking charts today. That doesn't mean that equities are about to fall off a cliff here, but it does mean that there is a real possibility that they will. The 2012 potential topping patterns I've been posting for weeks have now all completed forming more or less, and we are at the point of decision where we either rally, or break support to go considerably lower. That point of decision for me is 1340 SPX. If 1340 breaks that opens up a lot of downside, and if it holds then new highs for 2012 are still in play before a bigger correction in the summer. 

On the SPX 60min chart the sloping H&S I've been posting broke down and retested on the bounce yesterday. This is a very bearish setup unless the neckline can be recovered with confidence, and even then it looks ominous and would be reason for some caution on the long side. On a continuation down the target is in the 1290 area close to the October high at 1292.66: