AlanSantana

S&P 500 Index Will Crash To 2400 Sooner Rather Than Later

Short
SP:SPX   S&P 500 Index
S&P 500 (SPX) has been maxed out for a while now, and I am quite bearish on this index as you might already know from my previous analyses.

The reason I am bearish is because of the signals that I getting from the above chart. So come and read these signals with me, and later share in the comments section and tell me what you think... Let's get started!


S&P 500 Index Prints Additional Weakness

Our main focus for signals in past analyses was mainly a bearish divergence on the MACD and RSI , but now additional weakness is showing up:

  • On the chart above we can see how the ~2815 level, marked with a purple dash line, has rejected the SPX over and over in a 1,2,3 sequence. On the 13 March, the SPX had its third (sixth) rejection from this resistance after the bounce.

  • We can see decreasing trading volume , which is a signal that points to lack of momentum for the move that is in play.

  • The daily candle for the 13 March hit a high at 2821.24, making it higher than the peaks of the 25th Feb. and 4th March. But when you look at the MACD , you can see it going lower and lower; here is the bullish divergence once more. The same can be spotted on the RSI .

In a nutshell, we have a triple top, decreasing volume and strong bearish divergence.

According to the signals above, the SPX will make a strong down move soon. For these signals to be invalidated, the SPX needs to print a high volume candle above 2821 and follow up by breaking its all-time high.

What's your take on the next S&P 500 Index move?

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Thanks a lot for reading.

Namaste.
Comment: Update:

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