After strong rally of 260% since 2020 lows, weekly chart is now flashing negative divergence with PPO since May 3rd. Since then volumes have been declining as price still climbing. PPO trend line have been broken. Current price trend line didn’t break yet, but when it breaks it would be final confirmation of price decline. Minimum price target of $1700.
This would mean around 30% downside in S&P. Next few months outlook doesn’t look pretty.
On the bright side long term price target is $2.6K - $1.7K (or lower depending how it plays out) + $2.6K = $3.5K (or higher). This will take some time to develop.
This would mean around 30% downside in S&P. Next few months outlook doesn’t look pretty.
On the bright side long term price target is $2.6K - $1.7K (or lower depending how it plays out) + $2.6K = $3.5K (or higher). This will take some time to develop.
