SP 500 heading into resistance?
Hi Guys,
The SP 500 is slowly grinding higher and higher with every call for a top being dismissed by bulls as the index continually keeps creating all time high after all time high.
Price is currently heading towards an zrea where we may find some selling pressure.
The red box on the chart is that area and it contains the 2.0 retracement of the bear market high to low. That zone also coincides with the trendline drawn across the top
Daily RSI is showing divergence but not in overbought but 4hr is showing overbought and divergence
Lower timeframe entries may provide nice risk to reward trades.
Safe Trading all.
The SP 500 is slowly grinding higher and higher with every call for a top being dismissed by bulls as the index continually keeps creating all time high after all time high.
Price is currently heading towards an zrea where we may find some selling pressure.
The red box on the chart is that area and it contains the 2.0 retracement of the bear market high to low. That zone also coincides with the trendline drawn across the top
Daily RSI is showing divergence but not in overbought but 4hr is showing overbought and divergence
Lower timeframe entries may provide nice risk to reward trades.
Safe Trading all.
Note
Weekly RSI has made a double top in overbought and has then broken the neckline and is currently pulled back and formed another double top. This formation in RSI is very very ominous, especially considering its weekly timeframe. The next correction could be quite substantial. Note
I dont think it is a coincidence that weekly RSI has formed the way it has right at a very important level for the index.
Disclaimer
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.