SebMartel

SPX, Overbought ?

Short
SebMartel Updated   
SP:SPX   S&P 500 Index
As previously mentioned, 2630 pts on the SPX would have been a nice level to short if it could be combined with 10 year US yield at 2.81%, Crude oil at 54.5$ and Vix at 16. None of the latest were trading near their respective level by the time SPX was trading at 2630. Moving to today, 10 year yield are trading at 2bps from 2.81%, oil less than 1$ from 54.5 and VIX is 1 point away from 16. Short setup is on the way. Furthermore, RSI indicator for the SPX on a hourly chart point to overbought level at 80. Each time in the past four months, a reversal occured when the indicator was hitting 80. I am really not a fan of using indicator on a overbought/Oversold basis. I'd rather use them as divergence. By here, I can't ignore the fact that SPX reversed each time.
Trade active

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.