Black line- support trend line
Red lines- bearish divergence
Yellow rectangle- expected reversal area
Blue line- expected path
SPX remains in a bullish trend making higher highs and higher lows. The RSI has started providing bearish divergence warnings and that is why I believe the upside potential is limited. So far there has been no sign of a reversal. A new higher high in price is very possible but I also expect to see at least a short-term top soon. A pull back towards the black support trend line is justified after price makes a new higher high towards 4,500. Bulls remain in control of the trend.
