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.

Air Getting Very Thin Here

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I was talking on Friday about how every so often we see market moves that make no sense, but are technically sound, and go ahead and happen despite making no sense.  I was calling these grey swans and as it happens there was a very good example of this that day.

On my daily 45dma chart at the intraday high SPX reached a level 9.1% above the 45dma, higher than both of the highs made after the 2020 low at 8.7% and 8.4%. That was something I didn’t expect to see, but here we are.

SPX daily 45dma chart:

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A Difficult Prospect (by XerxesTraderGF)

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I’ll start by stating the obvious: It’s been a rough month to be a bear. I had warned about 3920 being a devastating technical level should we break above it. I’ll also admit that my “warning” was more for myself as others were already sounding the BULL alarm prior to that, but that was my technical level to watch. SPX successfully broke above that descending channel on July 19 and has continued a powerful rally since then, breaking through an important technical resistance zone, specifically 4080-4180. And here we are now thrust up just under 4300. Trying to come up with a bearish case is a very difficult prospect given this straight shot up. However, I would expect some volatility to reenter the market at the nearby technical levels as I expect anyone who got long near 3900 would like to take some profits near 4300 at the very least.

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