First of all, I have just put up a very cool Slope+ post, and I remembered that it has been a long, long time since I’ve promoted the service at all. Thus, I am offering a free month of Slope+ to those who want to give it a try (and, if nothing else, check out my awesome post). You can learn about Slope+ on this page, and you can subscribe on this page, using the coupon code sellinmay (as in “Sell in May and go away…..”) as shown below.
The chart below is of the NQ. This is not a bullish chart. Honest. There isn’t a single bullish thing about it. I know the H&S pattern in formation is a little too obvious, but I don’t mind obvious. Look at the $RUT or the $UTIL from 2008 and tell me those weren’t picture-perfect patterns. There’s nothing wrong with obvious. Slope+ readers got a very detailed post today about my target for the NASDAQ, as well as the rationale behind that target.
The best thing the bulls can claim about recent action is that we’ve double-bottomed. Indeed, on the Russell 2000, the day’s low was just a few hundredths of a single point lower than the February 5th low, as indicated by the lower red horizontal line on the chart below. That’s a pretty impressive looking hammer, similar to the February 5th one, and I’d be lying if I said it didn’t give me some concern. I’m a worrywart by nature, though.
Tomorrow (that is, Friday) is really important. The 50 day EMA is a hair’s breadth away from crossing under the 100 day EMA, which it hasn’t done in two years. Even a slightly weak day will do the trick. A failure of the double bottom (which probably will coincide with the USD/JPY chart I did a post about earlier today) will mean it’s time for glory.
