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.

Government Shutdown Gap

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It seems likely that deadlock over the budget negotiations will trigger a partial shutdown of the US government tonight for the first time in 17 years. Equities have responded with a big gap down overnight and ES is trading at 1671 as I write. Looking at the ES 60min chart this looks like a breakaway gap under the support trendline of a pattern that could be read either as a falling wedge or a sloping H&S. The target for either would be in the 1640-5 area. There is some positive RSI divergence here and we may see a retest of broken support in the 1681-3 area. That would look very shortable. If this is a breakaway gap it shouldn’t be filled until the downside move has finished. ES 60min chart: (more…)