📉 Overview: The S&P 500 (SPY) is signaling a bearish reversal with technical and momentum indicators aligning for a potential decline. A completed 5th wave top, coupled with a breakdown from the bearish wedge, hints at deeper corrections in the coming sessions.
📊 Technical Analysis:
Elliott Wave Count: SPY has likely completed its 5th wave top, marking the end of the bullish cycle.
Bearish Wedge Breakout: Price has decisively broken below the rising wedge's trendline, a historically reliable bearish signal.
Momentum Indicators: - RSI Divergence: Clear bearish divergence as price created higher highs while RSI formed lower highs. - MACD: Loss of upward momentum, with the MACD histogram turning negative.