S&P 500 May Show Signs of FatigueS&P 500 has rallied steadily since April, but some traders may see signs of fatigue.
The first pattern on today’s chart is the large bearish candle last Friday, October 10, as trade wars resurfaced. Prices have remained trapped inside the range since. Does the sideways trend mark an end to the six-month uptrend?
Second is the high on September 22, higher high on October 9 and lower high on October 15. That may be viewed as a potential rounded top. A pair of bearish outside bars could also be viewed as reversal signals.
Third is the October 3 weekly close of 6,715. SPX peaked near the same level on Wednesday and Thursday, which may suggest resistance has been established at a lower level.
Fourth, you have the September 26 weekly close of 6,644. The index plunged beneath that price last Friday and tried unsuccessfully to rebound above it in the first half of this week. That may reflect a lack of new support.
Next, SPX is potentially breaking a rising trendline that began in late May.
Finally, MACD has recently turned negative and prices may be stalling at the 8-day exponential moving average.
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