Blue lines- bearish channel
Red line- bullish RSI divergence
SPX justifies a bounce towards 4,500. Short-term trend remains bearish as price continues making lower lows and lower highs inside the blue downward sloping channel. The bullish RSI divergence shown by red, justifies a move at least towards 4,500 if not higher. The decline in SPX since the July 27th high can very well be over soon. So far there is no sign of a reversal to the upside. The bullish RSI divergence is only a warning. Not a reversal signal.
