We looked at the S&P 500 Index (SPX) exactly one week ago and saw signals of a top being hit... You can see it here:
The signals told us about a retrace for the SPX that is now in full play.
Here we are going to be looking at different signals on the weekly timeframe, last weeks analysis was done on the daily... Let's take a look.
Right now we can see the S&P 500 Index (SPX) testing EMA10/3221.68 (green line) while volume is moving up. This month we had the highest volume since July 2019.
Increasing volume while dropping, if we look at past history each time the SPX moves towards EMA10 on the daily it never fails to test EMA50/3014.61.
So EMA10 has already been hit, so based on the above signal, 3014.61 goes next... We are looking at a 6.54% drop from current prices.
We also have bearish indicators with the MACD and RSI both trending down.
These signals are telling us that the SPX is likely to continue to drop. If the last high is conquered, the above signals become invalid and a new analysis is needed.