SPX500 Flashes Warning as Q3 Conclusion Nears
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As we head towards the conclusion of Q3 at the end of the month, the SPX500 has flashed a serious warning sign. The index has charted a lower peak followed by a lower trough on the weekly time frame. This is a defined downtrend.
Moreover, the weekly RSI has dipped below 50 (green rectangle). This is the bearish side of the indicator. The longer it maintains on this side, the more pressure the index is likely to face.
The black 30-week EMA is currently acting as important support. However, if the index's candles cross below the EMA and the EMA turns down this will be regarded as further bearish signals.
Image by Arek Socha from Pixabay
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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