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.
Last week I was looking at the decent looking resistance trendlines and growing mass of negative RSI divergence on both SPX and NDX. Over the course of the last week first the SPX resistance trendline broke, though this could still be a bearish overthrow, and then the daily RSI 14 sell signal failed on Friday, and then the SPX RSI 5 sell signal failed yesterday. That is very unusual and does not favor a significant high being made here.
SPX daily chart:
This morning, on the heels of a totally false and misleading CPI report which is supposed to make us think prices are falling (!!!!!!!!!!) and the market was exploding to LIFETIME HIGHS, I had the presence of mind still to write, “Slashing rates, more often than not, means the Fed is desperate to stimulate the economy, and the reason they do this isn’t because things are peachy……..it’s because things are about to get tough.”
The green rectangles show the explosive move, which is dwarfed by the collapse that ensued. Why? Because one sweet man in Palo Alto with fabulous hair isn’t the only one who realizes how screwed equities are. I believe the Dow is going to lose TENS OF THOUSANDS OF POINTS before this is all over. I can only hope that the bulls mortgaged themselves to the hilt buying early on today. It couldn’t happen to a nicer group of guys.
