Super quick post today, but thought you’d want to see this. In a nutshell: the daily chart of the SPX (and other NA charts) suggests a HIGH probability of a pullback coming soon to a theatre near you. It is no surprise to see technical sell indicators right at the 4100-4200 technical resistance point on the charts.
Note – we’ve seen peaking activity followed by negative action every time there’s been a cross-the-board lining up of:
- Stochastics hooking down
- RSI rolling over
- Chalkin Moneyflow momentum overbought
- Most important: MACD bearish cross after an entire month of declining momentum (see the blue histogram bars on the MACD indictor, bottom pane).
Despite the maintenance of the SPX over its 50 and 200 SMA’s (suggesting mid-termed trend is still OK), the very neartermed signals are rather bearish. We may only see a neartermed pullback, perhaps to about 3800-3900 (recent neartermed support zone). Or more. Who knows? Whatever the case: The technical’s suggest holding off on adding to new equity positions for a bit, no matter how bullish you are. Let the market tell you when things are bullish again. Look for reversals in the daily chart indicators noted above. As noted above, this is just a quick n/ dirty update – one that I thought was important enough for you to see. Hope it helps.