Good day to all, SPX is back below 2900 after getting rejected at 2930-2940 level. In my recent tweets I have noted the importance of breaking above 2940 in order to resume up trend….otherwise the bounce from 2775 could be considered as a pause inside a bigger downward corrective move….
— Alexandros Yfantis (@alexanderYf) August 13, 2019
SPX bulls need to break above 2940 and stay above it otherwise there are many chances we see a bearish pattern similar to the decline we experienced in May…so another leg downwards could come and selling pressures 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 SPX…..
Be careful because overnight we already had another rejection….
Conclusion? As long as we stay below 2940 SPX is vulnerable to another sell off to 2800 or lower. Break above 2940 and we could see 3000-3100