How are you doing today? Hopefully you're staying safe and healthy going into the new year! This is simply my observation on the S&P 500 for 2021 so if you disagree please kindly explain your own analysis and maybe we'll both learn from this!
As you can see from my basic analysis the S&P 500 has been in a pattern of bearish divergence with the RSI starting in 2018. The price continues to push upwards and make higher highs despite making lower highs on the RSI for those uninformed about RSI divergences. If it's going to decline I'd say it'll start within the first quarter of 2021 based on the price being really close to resistance on the RSI, but make your own well informed decisions. Also, based on previous best line of trend support I'd say 2100 - 1900 is a potential first price target for a major decline.
There's a few reasons why this could occur: market volatility surrounding the presidential transition, new addition(s) to the S&P 500 losing value after a long period of gaining value, economy sliding into another recession as consumers lose the ability to make purchases based on emotion driven marketing, or perhaps we'll be graced with something that tops 2020. Just remember that even price declines are a healthy part of the market so if you're new don't get caught up in the emotion and quit trading. Every bad trade is just the price for success if you take the time to learn from them.
If you enjoyed my analysis then feel free to show this idea some support! I have a few more ideas that I'll be writing out over the next few days so look forward to those! Anyway, hope you have a lovely night wherever you may be!