First, we have a gap to fill around 4000 on SPX. Second, while we have been pushing new highs in the past couple weeks, we have a bearish divergence on both the MACD and RSI which are making lower highs with these new price highs. Third, there is a possible ascending wedge (bearish formation). Lastly, these 'push new highs and then fail' reversal days are not a good sign. Easy target is 4000; more likely though we find 3600-3800 in the coming weeks.
Note
today's rally seems to mostly be a dead cat bounce. could continue another day or two, but I think there is more downside to come. i'll probably keep feeling that way at least until the 4020 gap zone is filled. closing over 4180 would invalidate this thesis.Note
trying to close this stupid ~~4180-4185 gap is taking forever. zzzz. anyway, after it fills, i will scale into a few small short positions again. longer term charts still look pretty unhealthy but i could see sideways action or some of these other gaps try to fill. so gappy! otoh, as I noted last night, if we are able to close the gap AND hold up there, i'll change my view.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.