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The PTB Watches The Charts Too – See These!

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

The Powers That Be can read charts too, ya know. This morning, right when we were about to start a beautiful breakdown, wouldn’t ya know it, for absolutely no particular reason, the market was saved again. Miraculous, ain’t it? So we remain rangebound. 2900 on the top and 2855 on the bottom. Break either one, and watch the market rocket in that direction.

Liquidity moves markets!

Follow the money. Find the profits! 

Looking longer-term, the important shift that took place in the market early in August is absolutely intact. The trendline was melted away (yellow tint), and besides the two ranges mentioned above, there is a vastly more important level shown in grey below: 2728. If that breaks, forget about jawboning saving anything anymore. Game over, man.

It’s vitally important to keep an eye on the banks. The S&P bank sector fund, shown below, is already doing some “melting” of its own, similar to what happened in the chart above with the /ES. And, as with the chart above, after the melt is fully complete, price action can truly start pushing lower. It’s a slow process, because we’ve got the truth on one side (the bears) and lies on the other (the bulls). It’s a daily battle.

I remain short at 166%, with 50 positions, and frankly am getting a little weary of this up one day, down the next, repetition. On a happier note, I hope to have an extremely exciting new feature for you tonight.

Like art, Slope will never be finished. Only abandoned.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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