Today 04/05/21 the S&P 500 (SPX) reached an 86.3% gain from its 03/23/20 bottom. This move in a little more than one year is mind boggling and rare. Momentum and sentiment bearish divergences abound which have been documented in recent posts.
The daily SPX chart courtesy of Trading View illustrates daily RSI and MACD bearish divergences.
The throwover of the supposed Ending Diagonal Triangle (EDT) trend line is in doubt but is still not at a point in which the EDT count would be considered invalid.
The combination of a one – year massive rally and bearish momentum/sentiment strongly suggests that a major top for the US stock market could be near. Perhaps a top was made today.
Traders were recommended to short non-leveraged SPX related funds on the open of the 04/01/21 session. The entry price was SPX 3992.78. Today 50% of the position was stopped out on a move above SPX 4060.00 resulting in a 0.8% loss. Continue holding short 50% with a stop loss at SPX 4090.