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.
Technicals vs News (by Springheel Jack)
We saw a very strong day for equities on Friday and, despite the short session and holiday volume, SPX broke a number of key technical resistance levels that I'm inclined to take seriously. It wasn't a proper trading day on SPX, but I haven't noticed that making a lot of difference in the past when key levels have broken, and the benefit of the doubt is now back with the bulls.
On the SPX weekly chart the middle bollinger band (BB) target was in the 1412 area. SPX closed at 1409 which counts as a hit, so that is no longer a target. There have been fourteen hits of the weekly middle BB on a move from the weekly lower BB in the last fourteen years and eleven of those broke back above it. Of those eleven nine went on to hit the weekly upper BB, now in the 1475 area. Of the three hits that reversed at the weekly middle BB back down to the weekly lower BB, two went one to make the major lows in 2009 and 2010, and the third made the right shoulder on the 2010 IHS:
