Is The S&P 500 Index Peaking? A Retrace Is Possible

The S&P 500 Index (SPX/SPCFD) has formed a rising wedge, which is a bearish pattern.

Value has been going up but we have multiple bearish signals starting to develop.

Technically we are bullish here but we are predicting a price drop, based on the signals below:

1) Rising wedge.
2) Strong resistance ahead (ATH).
3) Multiple resistance levels in the form of EMAs have been taken out. Based on past history, a retrace takes place after such an event.

The black arrows can help you determine the projected path above and below the red/orange resistance.

The SPX can still move higher but at this stage only after breaking the strong resistance, we can consider that the bulls can continue to go.
But if this resistance can't be broken, the SPX is extremely likely to drop.

As I mentioned earlier... Technically we are bullish, but it is likely that soon the chart will start to turn.

I feel very secure about the drop but the chart is showing mixed signals and we have to remain open to all possible scenarios.
In just a few short days, we will have a much more clear picture as to what will come our way.

Please hit LIKE and leave a comment if you want me to go deeper and give you more charts on this index.

This is not financial advice.
All the information is shared here for educational and/or entertainment purposes only.

Your support is truly appreciated.

Namaste.