This is a purely technical analysis. We have some strong bearish signals coming out of the S&P 500 Index (SPX) chart.
First, we have a rising wedge, marked with orange dotted lines which tend to close bearish (this pattern can lead to a drop).
A peak was hit in May, we now have a higher high but bearish divergence is strong.
Bearish Divergence with the MACD and RSI
We have a very strong bearish divergence with the MACD and RSI.
We can easily notice the SPX closing higher while the mentioned indicators are closing lower.
Conclusion
When this drop develops, we are likely to see EMA100 tested since EMA50 has already been tested before. This drop can take the SPX to 4030 or lower.
It can take 1-3 months to see this drop develop. It is quite hard to guess the exact date but the signals are there... It is now only a matter of time.
Great analysis, couldn’t agree more just adding to my shorts and holding at this point. Volume has also been less than flattering of late. Just one big fugazzi to suck everyone in.
AlanSantana
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@kretchfoop901, Thanks for the comment... It is already developing... What news will accompany this?
Another wave of lockdowns??? Ouch!
iaretheanimal
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It's been waiting. The tea kettle will reach full boil when the fed announces it is tapering off asset purchases in August. It will leave the average american saddled with inflationary pricing, and bring the next wave of debt. Same cycle, different year. Wash, rinse, repeat.
according to superstonks the hedge funds are already in short positions
Simple_Renko
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Thank you for the analysis. S&P's been giving signals like this for years. Without a serious catalyst (like interest rate hikes, pandemics, global trade wars, etc.) huge moves like this to the downside are less likely. Especially when retail sentiment is still heavily short.
i forgot to say that you repeated your wrong idea about long term and short buying area your welcome dude
UnknownUnicorn10828932
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you talked about growth for alts at your telegram i stand against you in market drop is coming and you signaled the worst direction at worst price volume is awful, some alt signals for higher than 60 percent drop i detected valid rejection in btcusdt for some bothering reason i pray for delay in drop progress at btcusdt but it is falling dude namaste
AlanSantana
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@reza_1515, Zoom out...
Think bigger/longer.
Relax.
Disconnect.
Read some books.
Just detach, meditate and you will get the bigger picture.