SPX Daily Chart Negative Divergence

The bulls ran strongly higher yesterday printing above 1700 for the first time in history. The maroon lines show the negative divergence in place as the new high prints. The RSI is trying to squeeze out further upside juice but overall, the indicators are drastically lagging the big up in price, not what is expected for a strong rally. The indicators should all be printing higher highs. If the SPX continues higher today that should simply extend the topping process a few days longer. After such a large up day, markets tend to move flat the day after to absorb the energy. The bulls are at an advantage since the first few days of a new month are typically bullish as new money enters the markets. Projection is for price to top out again and roll over at any time forward with the SPX moving sideways to sideways lower for the days, weeks and months ahead. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.