The /NQ futures continuous chart hit a couple of key levels and bounced off them Tuesday.
Slope of Hope Blog Posts
This is the heart and soul of the web site. Here we have literally tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. You can also click on any category icon to see posts tagged with that particular category.
You know that things are starting to turn around for the bears, because people are starting to ship me alcohol. Back in the good old days of 2008, my mailbox was always stuffed with wine and chocolates. That dried up for years – – yes, years – – but recently fine liquors have started arriving. Indeed, I’m sipping on a superb bourbon at this very moment. Slopers are a fine lot.
I asked in the prior post whether people liked the variety of writers we have or whether it should be just me. Well, a large quantity of you responded, and the winner is………the status quo!
Crude oil has been sailing above its supporting trendline for a couple of years now. I am, of course, watching with great interest to see if we get a break of that uptrend.
SlopeCharts has had Fibonacci Retracements ever since it was launched last year. Today, however, we have tripled the number of Fibonacci tools, adding both the Arc and the Fanlines. The icon still looks the same, but now when you click the seashell, you will see three tool choices.
To use any Fibonacci tool on a chart, choose the seashell icon:
Three tool choices appear which are, from left to right, price retracements, arcs, and fanlines. Click any of the three to choose that tool (or click the seashell again to deselect).
Overlayed on each of the following two monthly charts of the S&P 500 Index (SPX) is a Fibonacci Speed Resistance Fan.
The first one is taken from the low of March 2009 to the high of May 2015, which preceded the last major pullback to first fanline support and prior to the recent minor one this past February. Based on this fan trajectory, the first major resistance level sits just above the last all-time high (of 2872.87) at 2900.
The mighty weight of Slope’s bear power has been fully focused in oil as of late, as our beloved and hard working leader called a top on the black gold with accuracy that Dennis Gartman would pay for in U.S. dollar terms. (editor’s note: I’m touched!)
But is it time to pause or reverse? A bit of price and time analysis on the daily chart reveals a potential zone of trouble for bears.
First, let’s look at price.
When the front month contract switched to September on Tuesday evening, price gapped lower on the continuous chart to the top of the zone predicted by prior swing retracements in price amount during this bull market.
The following monthly chart of the S&P 500 Index (SPX) simply shows the monthly closes from its inception.
January’s (2018) close of 2823.81 nearly tagged its long-term 140% trend-based Fibonacci extension level of 2836.
As of 2:03 pm ET today (Monday), its price is currently below its 1.27% Fibonacci extension level of 2625.
Failure to recapture and hold 2625 could see price eventually decline further to 2220 (its 1% Fib extension level), or lower to around 2100, due to a lack of major price consolidation support below its current price until then. (more…)
Twitter (TWTR) is stuck in between two long-term Fibonacci retracement levels (after nearly tagging and retreating from the 40% Fib) and a downtrending channel, as shown on the following monthly chart.
Momentum had been building since mid-2017, but was capped in mid-February.
It is 29% lower than it was at the close of its first week of its IPO (November 7, 2013), and it has spent more time under water since then, as shown on the weekly chart below.
A drop and hold below 28.00 could see a further decline to 20.00, or lower. Alternatively, a break and hold above 40.00 would be needed to confirm a sustainable price rally.
Harley-Davidson Inc. (HOG) may become a casualty of President Trump’s “trade war” policies. In particular, his latest threat to impose a 25% tariff on steel imports and 10% on aluminum has produced a retaliatory threat against the U.S. by Europe on companies such as HOG.
No doubt, this new policy, if pursued by the U.S., would be argued before the WTO and have greater implications on other countries and goods/services. My post of November 12, 2016 made mention of the need for the new Trump administration and Congress to consider a number of factors so as not to, potentially, cause economic imbalances and a catastrophic domino effect on the rest of the world. This is a complicated issue and will bring forth many positions/arguments/considerations and may cause further instability in world equity, currency, financial, bond, and commodity markets until a resolution is reached. (more…)