ES broke under 1680 support overnight and the obvious next target is the possible H&S and double-top neckline at 1670.5. The last positive RSI divergence that I was looking at on Friday morning on the basis that these would usually reach the 70 level on RSI has failed to do so as the 30 level on RSI has hit overnight instead. ES 60min chart: (more…)
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.
Middle Band Bounce
The double-bottom I was looking at yesterday morning on the ES 60min chart failed, just above the trigger level which is where these patterns generally fail when they do, but the 60min RSI positive divergence I was looking at increased into the low just above 1680 and we have seen a very strong bounce from there. The obvious target is back at a retest of the highs, and an IHS has formed that targets new highs. ES 60min chart: (more…)
Chop Chop
There’s not a huge amount to go on in the short term equities charts at the moment and while that remains the case it’s worth remembering that most or all of these charts are still in the right areas to be forming the second highs of double-tops for the move up from the June low. I don’t think that’s what we’re looking at here but it should be borne in mind, and in the event we were to see a sharp breakdown from here then the target on ES would be the 1635 area. As I said, worth bearing in mind but not the most likely scenario at the moment. (more…)
Starting (the) Weak
There’s a weak looking setup on ES coming into this week. There is some negative divergence on the 60min RSI, a possible rising channel from the last low with channel support currently in the 1688 area, and ES is testing the 50 hour MA in the 1700.75 area to see whether it will hold as support. As long as it does then bulls have the edge, but if ES breaks below the 50 HMA ten there is a possible short term double-top trigger level at 1696, and a target in the 1687 area on a break below that. I don’t think a significant high is in yet so if we do see an early retrace I’ll be looking for a good long entry. ES 60min chart: (more…)
Bear Goggles
I don’t know whether there’s an equivalent term in the US, but in the UK the term beer goggles describes the process whereby drinking a sufficiently large amount of alcohol can magically transform otherwise uninteresting members of the opposite sex into interesting and highly attractive people. The effect is temporary, but can be very strong. (Editor’s note: it’s the same here, Jack!) (more…)
