Today 01/04/21 in the first minute of trading on the first trading day of the new year the S&P 500 (SPX) made a new all-time high then had a sharp decline. The SPX began the day up 8 points it ended the day down 55 points.
Important Fibonacci resistance based on the SPX March 2009 to January 2010 rally was projected in the SPX 3780 area, the high today was 3770.
Daily Stochastic had reached the overbought zone. The daily RSI had a bearish divergence vs. the 09/02/20 SPX peak.
Toady’s drop triggered a daily Stochastic sell crossover and the daily RSI fell below the level recorded on the 12/21/20 decline.
Bearish momentum evidence at a time just after a new year implies that at least a multi-week decline may have begun.
Traders and investor are holding long non leveraged SPX related funds as of the open 11/03/20.
Sell 50% of the position at the open of SPX trading on 01/05/21.