S&P 500 top

[gkareer]

i am a newbie to trading, amongst other things i have learn't that the S&P 500 is the most important index in the world, whilst experimenting with my charts i've come across attachment of S&P 500 which shows it has topped with the RSI making lower lows.
Is this start of a new downtrend, as it's only breached the 30MA intra-day not end-of-day until now. It seems thay every stab of the 30MA brings in the buyers, until now. RSI also shows support at 50 but now been breached with lower lows.

Is it worth shorting for the short term??


I would appreciate any comments to help me with direction of this index.

thanks

sonny

 

[SUNSEEKER]

no, stay bullish above 976

 

[gkareer]

looks like a good support at 976, so best to wait until the clouds blow over ...then see whether or not the weather heads south.

 

[nemesis]

gkareer - short term to me is day or intra day trading. there is money to be made almost every day on spx trades. there is still the possibilty of it hitting 1015-1050 range so I will not be building/holding any short positions at the moment.

This how EWI view the outlook -

It’s a similar situation for the [S&P 500] in that the index should remain below 1015, the July 14 high. This key resistance level is important in keeping our confidence high in the short-term bearish forecast that we have made. If there is follow-through on Monday morning, resistance is 997-998, or 1001. Resistance for the SPU is 995-997, which includes a chart gap left on July 16. Like the cash index, slightly higher resistance is 1001, the 62% retracement of the recent decline.

The overall technical landscape has not changed, with investment advisors very bullish, insiders very bearish and the public following the rally higher

 

[gkareer]

Thanks for putting it in perspective for me nemesis.

sonny