Oil prices have dropped more than 1% at both the sides of the Atlantic and that has dragged down European stocks. Asian stocks were weak as well despite surprise rate cut by Bank of Korea.
S&P 500 is just 0.5% away from record highs and could turn lower from here if losses in oil result in a weak closing. This is because weak day end closing today would confirm bearish price RSI divergence on the daily chart.
Bearish divergence happening at the top of the current rally and within touching distance from record highs will not be good news for bulls.