SPX
⚠️ The S&P 500 shows a technical divergence, indicating potential weakening momentum despite recent price action.
📉 A key resistance level is identified around 5600; failure to decisively break above this zone soon could signal a pullback.
⏳ The ‘Dead Cross’ indicator (50-day MA crossing below 200-day MA) is discussed, though noted as a lagging indicator that often confirms a decline already in progress.
@marcosemmimfp:
“Well, how is this? I’ll explain. This has a divergence that we already saw a few days ago. A lot of volatility, trade war, and so on. 5600 is the resistance zone. If by Friday this doesn’t move and doesn’t reach that zone, meaning we’re still messing around here, be careful. Be careful because afterwards, it’s like this, huh? Why am I so sure? Because, as I mentioned, the damage is already done. ‘No, but now…’ Okay, keep going up. It doesn’t help me if you go up one day like the biggest rise of 2008 and then stay there. Keep going up more. Keep going up more. Give me more, my son. But that really doesn’t help me. We have a resistance area, I believe, here at 5600. Someone will want to sell there. And I have an uptrend process which only made a rebound and stayed there. Okay. Basically, I have to… What does Dead Cross mean? The Dead Cross is this, this thing here, the famous ‘cross of death’ that occurs when the 50-day moving average touches the 200-day moving average. That cross, this is known as the Dead Cross or the ‘cross of death’. It’s not that it doesn’t work; the problem is that by the time it warns you, it has already dropped. See? For example, let me see if we have one… See here, for example? Here’s the… No, there’s the cross, the cross of death. Let’s remove the shadow. Uh, here’s the cross of death. By the time it got here, it tells you, ‘No, it’s going to fall 18%.’ The index has already been falling 13% since it crossed. Same as here, right? When it crosses upwards, the bullish process comes, as they tell you here. Does it work or not? You have to basically see that here you have a downtrend, and here that downtrend practically ends. It says the lows are increasing. The candles give you much more information because indicators, or rather moving averages, don’t anticipate the price. And if they anticipate the price, they give false crosses, so it won’t help you. Well, putting that aside, I think that around 5600, we should have a resistance area. So this has to keep going up more, now.”
Watch the exact part of the video where @marcosemmimfp talks about S&P 500 Index here:
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