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

١٥ مارس ٢٠١٩

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.
  
  
• I also drew an alternative scenario which is less likely which are the purple arrows.
  

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.