S&P 500’s Bearish Divergence May Hit Shares


#us500 #snp500

Weekly S&P 500

Weekly S&P 500

Does history ever repeat itself exactly? Not so much. Do stock-market patterns sometimes look like momentum patterns? Yes.

This chart looks at the over the past 20 years on a weekly basis, with momentum in the top section.

In 2000 and 2007, weekly momentum started experiencing lower highs, while the market was creating higher highs at each (1). Momentum was experiencing a bearish/negative divergence with the S&P 500 both times. Once support broke in 2000 and 2007, selling pressure took over.

Over the past 20 months, momentum has created lower highs at (2), while the S&P has created higher highs.

The S&P could experience selling pressure if support happens to break at (3).

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply