The S&P 500 index has moved higher since the end of October. It is testing new all-time higher levels, but the time is now ripe for a top and possibly a sharp decline in the weeks to come. A break below minor support at 3,594 will confirm that a top is in place and a decline towards at least 3,275 should be expected.
Despite seeing an ending diagonal, negative divergence the S&P 500 index is testing the resistance-line of a major pitchfork that has been since the corona spike lower in late March 2020. All of these circumstance will make further progress difficult and limit the possible upside. We still cannot exclude new all-time highs being seen in the short-term as time is running out fast for the S&P 500 rally.
Trading recommendation:
The S&P 500 index is peaking and stops should be tight as a top is close by. Selling should be considered upon a break below 3,594.
The material has been provided by InstaForex Company - www.instaforex.com