There are two potential bullish events that could occur during the week of 12/05/22 to 12/09/22. The first is a break above the declining trendline from the January 2022 top. The second is a possible weekly RSI move above 54.81, this is the highest weekly RSI reading of the SPX June to August rally. The current weekly RSI reading is 53.69. An RSI move above a prior RSI high reading is usually a bullish signal. In this case if next week the weekly RSI moves above 54.81 it implies price could move up to at least SPX 4280.11.
But if the RSI is above 54.81 and the price doesn't reach 4280.11, then won't we have a hidden bearish divergence at the end of the week?
markrivest
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@toli_pl, Hi Bearish RSI divergences occur when price is above a prior top while the coresponding RSI reading is at a lower top. If RSI can go above 54.81 it is potentially bullish.