While the Monthly chart is far from being bearish, it has some early warning signals that a major market top may be soon in place. So don't get confused, the "Short" mark on this post is not (yet) a call for a short, just to signal a possible major market top development. (No one reads "Neutral" recommendations :-) )
- Price is very distant from monthly Kijun Sen, the log term equilibrium of 2149
- Heikin-Ashi candle shrinks, as bullish momentum starts to drop slowly. haOscillator is below its mid line, haDelta+ points down, but still above zero line.
- EWO peaked at its extreme top level, started to tick lower.
- MACD started to point down as well. This shows a development of a very long term bearish divergence compared to May/2015 peak of MACD and price highs between May/2015 and Sept/2017.
Strategic advises:
1. If you are a long only type of investor, then reduce exposure in equities. Sell some, take profit, and/or buy Put option strategy protections
2. If you are speculating, still no time for a short, not even for a swing short. For a short entry you have to watch lower time frames: weekly 2405 key level, and daily 2445 and 2405 key levels!
However if you'd like to have it, you can still buy somekind of 6-8 months maturity put spread or a 9 Months Vanilla Put at 2200 on SPX.
- Price is very distant from monthly Kijun Sen, the log term equilibrium of 2149
- Heikin-Ashi candle shrinks, as bullish momentum starts to drop slowly. haOscillator is below its mid line, haDelta+ points down, but still above zero line.
- EWO peaked at its extreme top level, started to tick lower.
- MACD started to point down as well. This shows a development of a very long term bearish divergence compared to May/2015 peak of MACD and price highs between May/2015 and Sept/2017.
Strategic advises:
1. If you are a long only type of investor, then reduce exposure in equities. Sell some, take profit, and/or buy Put option strategy protections
2. If you are speculating, still no time for a short, not even for a swing short. For a short entry you have to watch lower time frames: weekly 2405 key level, and daily 2445 and 2405 key levels!
However if you'd like to have it, you can still buy somekind of 6-8 months maturity put spread or a 9 Months Vanilla Put at 2200 on SPX.
