S&P has been trading within a Channel Up ever since the November 2020 U.S. elections. During that time, the RSI on the 1D time-frame has never gone above 76.30. Right now however, it is overbought and approaching the 80.000 Resistance where it was last seen on September 03 2020. As you see on the chart this overbought valuation couldn't do otherwise buy initiate a medium-term pull-back of -10%, which broke below the 1D MA50 (blue trend-line).
If the same pattern is followed, then a -10% correction would put the price exactly on the 1D MA200 (orange trend-line) at around 4250. Of course that depends on where the top is made but right now S&P500 is exactly at the top (Higher Highs trend-line) of the 12 month Channel Up you see on the chart. Technically if it gets rejected here, then the first buyers should appear on the 1D MA50. In any case the next target is the 2.0 Fibonacci extension at 4825.
Great chart mate. Still have long positions as I do agree with you, however SPX is a beast. I’ll just buy more throughout any pullback / correction that turns up
wehrletf
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This is the other one I really loved, great insight
peterbhc
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time to take profits, thank you
DaddySawbucks
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Darned thing just creeps higher, so many unfilled gaps, what a mess... been watching same idea, just won't fill fgs