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.

(Click on image to enlarge)

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.

(Click on image to enlarge)

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.

Disclaimer: All persons and entities contributing to the content on this website, and their representatives, agents, and affiliates are not providing investment or legal advice on this website.Nor ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.