SPX
has formed a big Rising Wedge which is a potential bearish reversal signal. There was an Abandoned Island Top gapping high above Rising Wedge trendline, strong bearish reversal signal. Most likely one last try to squeeze out shorts.
However, shortly after followed big selloff and gapping bellow the Rising Wedge, falling below 5 & 20-day EMAs and quickly testing mentally important 3000 level.
5 & 20-day EMAs are excellent tools to determine potential trend reversals, because in trending markets the price action wants to stay above or below these averages.
If 5-day EMA manages to cross below 20-day EMA like back in Feb 24th, it could indicate another sharp selloff.
RSI is showing bearish divergence, although still slightly above 50 level.
Doji Star Bearish Formation slightly above Fib 0.236 level indicating potential reversal and retest of that level.