ACTV - S&P 500: Evidence Of A Top Week Starting July 22nd (Technical Analysis)
2024-07-21 16:00:00 ET
Summary
- Bearish signals were in place last weekend, but we needed to see price action confirm the bias.
- This week's action provided confirmation, and both the monthly and weekly charts have made potential reversal patterns.
- 5446-70 should hold for a bounce into the end of July, but at least another leg down is expected.
The S&P 500 ( SPY ) continued higher to 5669 on Tuesday before reversing and dropping to a Friday low of 5497, thereby "engulfing" the entire range of the previous week. This bearish price action was needed to corroborate the mounting negative signs highlighted in last weekend's article:
S&P 500: Evidence Of A Top, Week Starting July 22nd (Technical Analysis)Due to the major Fib level at 5638, the multiple exhaustion signals, the "sell the news" action and the complete pricing in of September cut, I do think the S&P 500 is ripe for a major reversal.