The monthly SPX chart shows negative divergence (price vs RSI) against the double top in 2018. The MACD also did a bearish crossing - note the significant weakness subsequent to such MACD bearish crossings in the past (circled). SPX has been probing the mid-BB over the past three months. If the mid-BB support does not hold, the lower BB (currently at 2372) presents a reasonable next-level support.
The weekly SPX chart shows the probing of the lower BB in recent weeks. This past week's candle is not bullish. The rectangle consolidation zone should be monitored.
The daily SPX chart finally did a death cross on Friday. Note the steep decline in MA50 and the weakness in MA200.
Short term wave structures offer some flexibility since this past week's decline is likely a small degree first wave or B wave.
Why not triangle on daily ?
ReplyDeletePossible in SPX but less likely as INDU made a higher high as marked and NDX made a lower low as marked.
ReplyDelete