The markets are ranging currently as a generic trend this few days after $DJIA, S&P500 and NASDAQ maintain their relentless climb despite already reaching all time highs.
However i am seeing some warning signs which may occur over the next few days
Currently an incomplete head and shoulder pattern is forming in the daily chart. Careful monitoring is required especially if the pattern completes with a plunging neckline at 33259 support level. Bearish reversal trend is confirm if it breaks past 33259 support line and its neckline.
Currently SPX is overextended. It is currently forming a incomplete bearish divergence. More monitoring is required to see if this pattern is completed. Once it breaks past 4200, bearish trend reversal is confirmed. The last time this happen was in Sep 2020 which saw a 10% correction in S&P 500.
In short, the markets are really overextended right now and there are several warning signs of bearish reversal forming.
Do invest with caution. I would not be buying any more stocks right now.
Refer to my post for high impact event alerts for July Week 1
Refer to my post for the impending crisis which may happen in July.
Sit tight !