S&P500: Watch Out for a Possible Reversal at this Zone
Dears,
If we assume(speculate on) that we are already in a bear market, following the high recorded on February 19th, then:
I will be looking for signs for bearish reversal starting from 2940(horizontal resistance) up to 3024 (next horizontal resistance)
This area includes the confluence of the 200 days exponential and simple moving averages as well.
If we reach there, the percentage of shares above their 50-days moving average(top panel) will probably hit 75 percent and above. Which is a considered an overbought signal. Meanwhile, RSI will probably be overbought as well.
These overbought signals are reliable ONLY if we are in a downtrend, or a sideways market.
Trade with care and stay safe
Technician
If we assume(speculate on) that we are already in a bear market, following the high recorded on February 19th, then:
I will be looking for signs for bearish reversal starting from 2940(horizontal resistance) up to 3024 (next horizontal resistance)
This area includes the confluence of the 200 days exponential and simple moving averages as well.
If we reach there, the percentage of shares above their 50-days moving average(top panel) will probably hit 75 percent and above. Which is a considered an overbought signal. Meanwhile, RSI will probably be overbought as well.
These overbought signals are reliable ONLY if we are in a downtrend, or a sideways market.
Trade with care and stay safe
Technician
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