SPX bearish divergence, bulls watch out for 2950-2920

Good morning everyone!!!

SPX is showing a triple divergence in the RSI as price does not follow the higher highs of the index. This is a typical bearish warning and a break below horizontal and cloud support at 2950-2920 would open the way for a bigger decline maybe towards 2820-2850.

First important short-term support is at 2950. We could see a back test and bounce off this area. This would be a bullish sign. Breaking below it will open the way for a test of the next support level of 2925-2920. Breaking below this area will push price at least towards 2880  if not 2825. When I see formations like the above I prefer to be neutral.

 

 

Take care everyone!