SPX500 bulls continued to print yet another high close to 4,550 mark yesterday. The indice has defied resistance lately, printing higher highs. Please be watchful since the recent swing highs have been accompanied by divergence in the RSI.
SPX500 has been unfolding into an impulse wave since 4035 lows in May 2021. As labelled on the 4H chart here, the indice might have already completed 5 waves and it could be preparing to reverse lower any moment.
Immediate price support is now seen at 4350 while resistance is just above 4550. A break below 4350 will confirm that a meaningful top is in place and that bears are back in control. Until that happen, the indice can test 4550 and 4580 mark before finding major resistance.
Having said that, we would like to bring to notice the divergence seen between SPX500 and the Dow Jones price action. The latter has refrained from printing all-time highs as SPX500 continued to print in recent times.
Traders are advised to remain on the side lines for now and wait for a break below 4350 at least, to initiate fresh short positions.
The Profinacademy.com Team
Bitcoin dropped close to $46000 mark on Monday before finding support again. The crypto is seen to be trading around $46500 mark at the time of writing as bulls remain inclined to be back in control.
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.