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.
* N.B. See Friday’s UPDATE below…
Thursday, August 20th:
Note the aggressive selling on the SPX when the SPX:VIX ratio gets up to the 180 level. A drop and hold below the 100 major support level could spell big trouble for the SPX and the other Major U.S. Indices.
With the Momentum indicator in a downtrend on this timeframe, I wouldn’t be surprised to see a larger pullback occur in the equity markets. Watch the 2038 level on the SPX, as mentioned in my post of August 14th, for confirmation.
SPX:VIX Monthly Ratio Chart
The word “hero” is sickeningly misused, often bandied about by politicians to describe anyone who happens to serve in the military, or dies in a fire, or otherwise gets killed either through misfortune or, sometimes, their own stupidity. Since it’s used so often to pander to an audience, it has been diluted to near meaninglessness.
The S&P 500 (SPX) price structure has plunged from the confines of its Dec-Aug top formation, and through its Oct 2011 support line in the vicinity of 1992.00.
Although my near-term work might argue for the emergence of a two-way trade, my intermediate-term work suggests strongly that the SPX has unfinished business on the downside — to 1900 at a minimum in the hours and days ahead.
Such a scenario would amount to a 10%-11% correction off of the May-July highs.
That said, however, if a garden-variety, 10% correction does not include a major capitulation, then we should be aware that a test of the Oct 2014 low will represent a 15% correction, while a test of the Feb 2013 low will amount to a 19% correction off of the highs.
Originally published on MPTrader.com.