SPX Rising Wedge|Stochastics bearish Div|.618 Fib Resistance
Evening Traders,
Today’s technical analysis – S&P 500 lndex – breaking out if its rising wedge structure, respecting strong upper resistance, it is likely to establish a macro lower high.
Points to consider,
- Bearish trend structure
- .618 Fibonacci Resistance
- Local Support retest
- RSI testing 50
- Stochastics bearish divergence
SPX Index is in bear trend with this macro lower high likely to be set due to the break of the rising wedge.
The .618 Fibonacci is current resistance, travelling below it is considered to be a bear market, a break above and consolidation will negate this narrative as this will also take out the 200 MA.
Local support is likely to be tested as this is the next structural trade location, bulls need to defend this level.
The RSI is likely to break 50, where trading below will increase the probability of a bearish bias. Stochastics on the other hand is clearly showing a valid bearish divergence, indicating momentum shifting bearish.
Overall, in my opinion, SPX is due for a correction, breaking this rising wedge increases the probability of putting in a lower high.
The trend is still developing, but these are early signs of momentum running out for the bulls.
What are your thoughts?
Please leave a like and comment,
And remember,
“A peak performance trader is totally committed to being the best and doing whatever it takes to be the best. He feels totally responsible for whatever happens and thus can learn from mistakes. These people typically have a working business plan for trading because they treat trading as a business.” - Van K. Tharp
Today’s technical analysis – S&P 500 lndex – breaking out if its rising wedge structure, respecting strong upper resistance, it is likely to establish a macro lower high.
Points to consider,
- Bearish trend structure
- .618 Fibonacci Resistance
- Local Support retest
- RSI testing 50
- Stochastics bearish divergence
SPX Index is in bear trend with this macro lower high likely to be set due to the break of the rising wedge.
The .618 Fibonacci is current resistance, travelling below it is considered to be a bear market, a break above and consolidation will negate this narrative as this will also take out the 200 MA.
Local support is likely to be tested as this is the next structural trade location, bulls need to defend this level.
The RSI is likely to break 50, where trading below will increase the probability of a bearish bias. Stochastics on the other hand is clearly showing a valid bearish divergence, indicating momentum shifting bearish.
Overall, in my opinion, SPX is due for a correction, breaking this rising wedge increases the probability of putting in a lower high.
The trend is still developing, but these are early signs of momentum running out for the bulls.
What are your thoughts?
Please leave a like and comment,
And remember,
“A peak performance trader is totally committed to being the best and doing whatever it takes to be the best. He feels totally responsible for whatever happens and thus can learn from mistakes. These people typically have a working business plan for trading because they treat trading as a business.” - Van K. Tharp