The Powers That Be can read charts too, ya know. This morning, right when we were about to start a beautiful breakdown, wouldn’t ya know it, for absolutely no particular reason, the market was saved again. Miraculous, ain’t it? So we remain rangebound. 2900 on the top and 2855 on the bottom. Break either one, and watch the market rocket in that direction.
Looking longer-term, the important shift that took place in the market early in August is absolutely intact. The trendline was melted away (yellow tint), and besides the two ranges mentioned above, there is a vastly more important level shown in grey below: 2728. If that breaks, forget about jawboning saving anything anymore. Game over, man.
It’s vitally important to keep an eye on the banks. The S&P bank sector fund, shown below, is already doing some “melting” of its own, similar to what happened in the chart above with the /ES. And, as with the chart above, after the melt is fully complete, price action can truly start pushing lower. It’s a slow process, because we’ve got the truth on one side (the bears) and lies on the other (the bulls). It’s a daily battle.
I remain short at 166%, with 50 positions, and frankly am getting a little weary of this up one day, down the next, repetition. On a happier note, I hope to have an extremely exciting new feature for you tonight.
Like art, Slope will never be finished. Only abandoned.