Blue lines- bullish channel
Red line- bearish RSI divergence
SPX is at its highest levels since March of 2022. Price remains in a bullish trend making higher highs and higher lows. Price continues to respect the blue channel boundaries as price rises. On the contrary to price, the RSI indicator is making lower highs since June. The bearish divergence signals by the RSI are an important warning to bulls. If this warning is combined with a break out of the bullish channel below 4,530, then we will have a short-term bearish reversal signal. A pull back towards is both justified and highly likely. Medium- and long-term trend remain bullish. But the chances for a pull back in the near term have increased dramatically.
