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.

Janus Flag Targets

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On Friday afternoon. in the webinar I posted on my twitter, I was talking about the either way setup that had formed on equity indices with the formation and break down from head and shoulders patterns on SPX, NDX, RUT and INDU. I noted that on this setup there were only two strong targets to watch, and that was either a move to the H&S target, on SPX a retracement to the May low at 2766, or a rejection back up into a retest of the June high. In the case of the rejection that would be a pattern that I would call a Janus (Bull) Flag, I see a lot of these and they make the rejection/retest target 80% to 90% of the time. When the target isn’t reached there is often a near miss.

The H&S patterns have since all failed, so the Janus Flag targets are fixed on all of those indices and in the absence of strong evidence to the contrary, I’m expecting those targets to be reached.SPX 60min chart:

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Common Elements

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Not exactly a riveting morning so far, is it? In spite of ample reports of a looming “second wave“, the persistent promise of another trillion dollar “stimulus” package, maybe a new one every couple of weeks for whoever asks, is propping up this pig.

Below I offer several major cash index markets on which I’ve marked a few common elements:

  • Green tint showing the lifetime high;
  • Yellow tint showing the important price gap from last week;
  • Red circle showing the damage or failure of the March 23 trendline.
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Dow Jones Composite
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