- Chart Pattern formed – Bearish divergence (RSI and CCI (50) in Monthly chart).
- S&P500 has touched record high at 2552 on Oct 5th and is consolidating slightly from that level. The index hits low of 2541 and is currently trading around 2546.
- The index near term support is around 2540 and any break below will take the index to next level till 2520 (23.6% retracement of 2416 and 2552)/2500/2459 (5- month MA).Any bearish continuation only below 2416 (Aug 18th 2017 low).
- On the higher side, near term resistance is around 2553 and any break above will take the pair to 2585/2600.
- In the monthly chart the index has formed bearish divergence in RSI and CCI (50) and a slight dip till 2500/2460 likely.
It is good to sell on rallies around 2550 with SL around 2565 for the TP of 2520/2501.
