SPX500 Reacts Off of Resistance Level on Daily

Further to our previous article, the SPX500 has reacted from overhead resistance. The index is now challenging its black 20-day SMA support. If it crosses below and the SMA turns down this will be bearish development. We are also watching the daily RSI to see if it slips to the bearish side of 50. The right chart shows the hourly time frame. Here, the EMAs are in bearish mode and the RSI is below 50 (green ellipses). If the EMAs show further angle and separation, the index will be heading lower.