S&P 500 – Bearish Divergence
S&P 500 SP:SPX
The market made a good upward movement, and it looks like we should be ready to see a correction soon. The market looks overbought, and we have a bearish divergence. If the price can break the uptrend line and drops below 2800.00 support level , it will be a confirmation for further downward movement. It will be possible to open short trades with stop orders above the local swing high and profit targets at the support levels.
RSI confirms the price reversals. MACD lines and histogram will be able to support the downward movement soon. DMI is bullish with ADX line at the 20.00 signal level.
If the price bounces from the support zone formed by the uptrend line and 2800.00 level, the market will need to break the nearest swing high at 2850.00 level just to confirm the strength of buyers. Without it, searching for sell opportunities will be a better option.
Source: TW DLavrov