SPX Bearish Scenario

Good day to all, SPX is back below 2900 after getting rejected at 2930-2940 level. In my recent tweets, I have noted the importance of breaking above 2940 in order to resume uptrend otherwise the bounce from 2775 could be considered as a pause inside a bigger downward corrective move.

SPX bulls need to break above 2940 and stay above it otherwise there are many chances we see a bearish pattern similar to the decline we experienced in May… so another leg downwards could come and selling pressures could push the index to 2800 or lower again.

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The RSI has a trend line resistance that cannot break above it. Each time we reach that resistance and get rejected, a sell-off follows in the SPX.

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Be careful because overnight we already had another rejection….

Conclusion? As long as we stay below 2940 SPX is vulnerable to another sell-off to 2800 or lower. Break above 2940 and we could see 3000-3100.

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