Chart pattern: Bullish divergence in CCI and RSI
S&P500 has lost nearly 4.75% this week and hits low of 2650 yesterday. The oscillator is daily chart shows bullish divergence and in oversold territory. The index has shown a minor recovery till 2678.9 at the time of writing. It is currently trading around 2678.
Overall trend is bearish but minor recovery till 2721(23.6% fib) is possible. Major trend reversal can happen if the index closes above 2821 high made on Oct 17th 2018.10.25
The near term major support is around 2640 (trend line support) and any break below targets 2617/2600.
It is good to buy on dips around 2665-70 with SL around 2640 for the TP of 2721/2745.
