$SPX
# has broken the all-time highest record.
Momentum not yet.
The daily RSI shows a clear bearish divergence as the index tests new highs.
This does not mean the top has already been reached. Divergence is a warning, not a sell signal, and price remains the key.
However, also consider:
• Perfect Storm Index™ at 63/100
• Rising geopolitical/energy risks
• Restrictive bond yields
• Increasing signs of pressure behind a seemingly calm market
After an extremely strong bullish rally, I will now closely watch for price confirmation of that momentum warning.
Risk often appears before the trend finally reverses.
# has broken the all-time highest record.
Momentum not yet.
The daily RSI shows a clear bearish divergence as the index tests new highs.
This does not mean the top has already been reached. Divergence is a warning, not a sell signal, and price remains the key.
However, also consider:
• Perfect Storm Index™ at 63/100
• Rising geopolitical/energy risks
• Restrictive bond yields
• Increasing signs of pressure behind a seemingly calm market
After an extremely strong bullish rally, I will now closely watch for price confirmation of that momentum warning.
Risk often appears before the trend finally reverses.