Short

S&P 500 Index Drops For The First After New ATH (UK)

Updated

The S&P 500 Index (SPCFD) is in a similar situation as the Dow Jones Industrial Average (DJI), breaking down below support for the first time after hitting an all-time high.

We have multiple signals to look at here... Please allow me to entertain you for a few minutes.

We have a rising wedge. This is a classic on these charts. When the wedge breaks down, we have a retrace that leads to the test of EMA50, EMA100 and finally EMA300 (gray). The first level to test is EMA50 (2947.6), small bounce if it holds and then EMA100 (blue) is tested.
Bearish divergence is showing on both the MACD And RSI. This is normal when a drop is coming after a new all-time high (ATH).
We thought the fed rates cuts were going to push the markets higher, up, but instead it is still the end of this run.
We don't believe that the fed rate cut caused this drop, instead this was something necessary and it must happen as the market has been overbought for years. The USA president did a great job but there is no stopping what has been building up for years in these charts.

What's your opinion on what happens next?

Use the comments section below...

Thanks a lot for reading.

And thanks for your support.

Namaste.

Note

This is a strong drop.

AlanSantana

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