Is S&P 500 about to break bearish?
- Tuesday session sees S&P 500 break bearish out of long-term triangle
- Technical indicators strongly indicate top, possible reversal forming
- Move above 2,170 needed to shift out of bearish pattern
The bearish breakout resulted in the RSI breaking its rising trendline and the index heading for a test of the longer-term rising trendline (thicker blue line) going back to Q1 of this year.
There will be some support in the fact that the 55- and 200-week SMAs are rising. Another factor on the positive side is that there has been no divergence on RSI at the peak (although volume has been falling slightly for the past two quarters).
A close below September's low at around 2,119 could be the next trigger after the triangle breakout a couple of days ago. Looking at the futures prior to today's open, that level seem to be coming under pressure.