E SPX Showing Double Top Pattern

The bull run of the S&P 500 Index, which started way back in early 2016, seems to be weakening. The S&P 500 Index on weekly charts has made a "Double Top Pattern" or can be referred as "'M' Top Pattern". Oscillator RSI(14) has also made a lower high, confirming Bearish Divergence. (A bearish divergence occurs when prices keep making higher high and oscillator starts forming lower highs, indicating weakness in trend.)

If the S&P 500 index closes below 2350 this week, then the price can retest 2325 levels. Closing below the 2320 level will confirm the downtrend.

Time to remain cautious on equity investments.

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Disclaimer: The above views are only for educational purposes. Equity & commodity trading has large potential rewards, but also large potential risks. You must be aware of these risks and be ...

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Anastasija Janevska 10 months ago Member's comment

Looking forward to more by you...