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.
SPX has now spent five days trading in a narrow range with support at 1397 and resistance at 1406. Overall this looks like topping action, as SPX is too close to the upper bollinger band on the daily chart to allow for a lot of upside without at least some retracement. What we might well see though is a test of the April high, which is at 1422.38, with the upper bollinger band now in the 1420 area:
I was leaning bearish for the last three days last week, and while SPX didn't go up, it didn't go down either. On Friday morning there was a very promising break down through a decent short term trendline that had developed. That was quickly reversed, and overnight that recovered trendline has held as support. A rough triangle has formed over the last few days and we may well now see a break up through triangle resistance. If that holds then trendline resistance is in the 1413-5 area and we may well see that tested. Triangle support is in the 1397 area:
I've been leaning bearish for a couple of days now, and we haven't seen a significant retracement yet, but SPX hasn't bulled upwards either. On the SPX daily chart SPX is dropping away from the (still rising) upper bollinger band. If we see a retracement into the middle bollinger band then that is at 1373 today, and 1380 or below would count as a hit:
TLT remains my only large short position, and it's also just about the only bright spot in my trading day. This is a beautifully-formed head and shoulders pattern, and the retracement to the neckline simply affirms the cleanness of this set-up. I have increased the size of my short, and although I think ZB is ultimately going to tag about 145.25 or so, I'll cover at anywhere close to 146 (note: I am using prices from ZB as a reference point here, even though TLT is the actual position).
SPX has been pushing up the upper bollinger band on the daily chart as I was suggesting it might well do. A landmark was reached yesterday when SPX reached the 14-3-5 target area for the IHS from the low. Making that target was a long and winding road and it is no longer in play. Worth noting on this chart that SPX rising channel resistance is slightly north of 1420:
