SP500 price action is headed for tough resistances. It is currently in a an ascending channel finding support in the line depicted on the chart. This is simple connecting highs and lows points however these points are of relevance.
The last SP500 high coincided with sistematic RSI divergences on the weekly and monthly charts. IT is shown as the last resistance should SP500 continue higher.
I have also drawn on the chart a elliot wave correction pattern A-B-C which normally follows a 5-Wave impulse. The current price action fits the establishment of wave B.
Also and taking a ten year long chart all major high of SP500 I have checked that in all previous SP500 bear markets they have been preceded by RSI divergences. Also when looking at VIX indicator which is some sort of fear gauge of the market. It can be seen that at the contrary of previous corrections the VIX indicator has show a spike of the same magnitude of the ones that can also be seen at premisses of other bear markets.
The last SP500 high coincided with sistematic RSI divergences on the weekly and monthly charts. IT is shown as the last resistance should SP500 continue higher.
I have also drawn on the chart a elliot wave correction pattern A-B-C which normally follows a 5-Wave impulse. The current price action fits the establishment of wave B.
Also and taking a ten year long chart all major high of SP500 I have checked that in all previous SP500 bear markets they have been preceded by RSI divergences. Also when looking at VIX indicator which is some sort of fear gauge of the market. It can be seen that at the contrary of previous corrections the VIX indicator has show a spike of the same magnitude of the ones that can also be seen at premisses of other bear markets.
