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S&P: Lower Close In Overbought Conditions Is Not Positive

Published 06/21/2017, 03:43 AM
Updated 07/09/2023, 06:31 AM
US500
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S&P Daily Chart

Emini S&P 500 new all time high followed by a much lower close in overbought conditions is not very positive. Picking a top in this market is obviously bloody stupid but you have to wonder when at least a small correction is coming. We would need to build a topping pattern for anything more significant on the downside. (The start of a more prolonged bear trend). Holding below support at 2435 is more negative targeting the best support for today at 2429/26. If this holds bears obviously remain in full control. However on further losses we retest the low last week at 2419/18 and 2 week low at 2415. Bear in mind a weekly close on Friday below 2418 gives us a weekly reversal sell signal. Only minor - but still a short term sell signal. Below 2415 today targets short term Fibonacci support at 2411/10.

Bulls need prices above 2440 today to retest the 2450/51.50 high. Bear in mind very strong resistance at 2457/59 and again at 4.5 year trend line resistance at 2475/80.

I cannot help thinking we are near a top as we hold just below these important levels.

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