The is back below 2900 after getting rejected at the 2930-2940 level. In my recent tweets I noted the importance of breaking above 2940 in order to resume an up trend. Otherwise the bounce from 2775 could be considered a pause inside a bigger downward corrective move.
S&P 500 bulls need to break above 2940 and stay above that level, otherwise there’s a good chance that we’ll see a bearish pattern similar to the decline we experienced in May…so another leg down could come and selling pressure could push the index to 2800 or lower again.
The RSI has a trend-line resistance that cannot break above it. Each time we reach that resistance and get rejected, a sell off follows in the index.
Be careful because overnight we had another rejection.
As long as we stay below 2940, the S&P 500 is vulnerable to another sell off to 2800 or lower. Break above 2940 and we could see 3000-3100.
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