Daily Sell Signals Now Brewing

In my post last Friday I was talking about the likely retest coming of the new all time high on SPX (and ES), and how that should set possible daily RSI sell signals brewing on SPX (and ES). We saw that ATH retest and marginal new ATH this morning and I am now looking for a high. It is possible that SPX/ES might go a bit higher but I wouldn’t expect much higher and I’d note that there is already a decent quality double top setup here and that on a sustained break below 2964 the double top target would be in the 2923 area.

ES Sep 60min chart:

On SPX the smaller rising wedge has broken down but it is still possible that the larger wedge resistance trendline might be a target. That is now in the 3025 area.

SPX 60min chart:

On the daily chart we now see the RSI topping configuration that I was looking for to form in my last post. Today is the middle of this high window so i am looking for a high to form. The key support level I am watching for support here is the level that held at the low yesterday, at the 50 hour MA on SPX, now in the 2971 area.

SPX daily chart:

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Written by:

Richard Chappell

Jack is a 20 year retail trading veteran and co-founder of The Art Of Chart. He started his blog at channelsandpatterns.net in 2010 and since has published tens of thousands of charts looking at hundreds of trading instruments across most tradeable markets, doing original work mainly in the areas of trendlines, patterns and divergences. At The Art Of Chart Jack has taught trading skills, technical analysis, and the discipline and trader psychology that allow those to be used effectively in trading.

10th Jul 2019

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