There is a shooting star candlestick developing on the SPX monthly chart (I use SPX500USD for my charting here).
Because we are at the end of november, unless we have significant amounts of upward momentum soon (I.e. on Monday and Tuesday) then this will leave a shooting star as November's candlestick.
This is a very bearish signal.
You can see from here that MACD is very toppy.
However, if we zoom out to put this into context....
MACD is significantly more overbought than it was during the pre-credit crunch period and more overbought than any time between 2010 and 2021.
As such, this looks like a potentially bearish reversal lining up for the new year.
My theory is that the panic over the African covid variant (which appears to be vaccine resistant) could spook markets just as credit risk and a Chinese slowdown takes effect.
As always, do your own research.
Because we are at the end of november, unless we have significant amounts of upward momentum soon (I.e. on Monday and Tuesday) then this will leave a shooting star as November's candlestick.
This is a very bearish signal.
You can see from here that MACD is very toppy.
However, if we zoom out to put this into context....
MACD is significantly more overbought than it was during the pre-credit crunch period and more overbought than any time between 2010 and 2021.
As such, this looks like a potentially bearish reversal lining up for the new year.
My theory is that the panic over the African covid variant (which appears to be vaccine resistant) could spook markets just as credit risk and a Chinese slowdown takes effect.
As always, do your own research.