The bull run of the S&P 500 Index, which started way back in early 2016, seems to be weakening. The S&P 500 Index on weekly charts has made a “Double Top Pattern” or can be referred as “‘M’ Top Pattern”. Oscillator RSI(14) has also made a lower high, confirming Bearish Divergence. (A bearish divergence occurs when prices keep making higher high and oscillator starts forming lower highs, indicating weakness in trend.)
If the S&P 500 index closes below 2350 this week, then the price can retest 2325 levels. Closing below the 2320 level will confirm the downtrend.
Time to remain cautious on equity investments.
