SPX is making a case for a triple top
In this article, we are looking at the top-down S&P500 analysis.
On the monthly SPX chart, we can see that the instrument is reaching an extreme top 2900 level, again. This time after a deeper retrace in 2350-2400 zone. The monthly chart is revealing an extreme negative divergence by the many oscillators.
We have used the combination of the top-down trading analysis and the Price action trading analysis to get to a trading entry stop loss levels and targets indicated below.
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The most significant indicator that the top is forming, with a possibility for a triple top, is a daily chart and a terminal wedge (rising wedge, usually bearish). From here it is a good short trade risk to reward entry with the stop loss above 2920 targeting 2830 at least and upon a break of this level releasing a trade with the breakeven stop loss.
