Rally End Game for Stocks? – 04/06/23

An important top for U.S. stocks could be made next week.

The daily S&P 500 (SPX) chart courtesy of Trading View updates the action. 

The SPX may soon complete an Elliott wave – Inverse Horizontal Triangle that began on 06/22/23. It appears the final part of that structure – Minor wave “E” could terminate on or near 04/12/23.   Recent blogs on this site noted a Fibonacci time cycle turn point on 04/12/23, the same date as the important U.S. Consumer Price Index (CPI) report.

The SPX is nearing the Horizontal Triangle declining trendline.  Note that sometimes wave “E” can briefly move beyond the trendline.

The daily MACD – Histogram has a small bearish divergence.

The daily RSI is nearing the overbought boundary at 70%.

After Horizontal Triangles are complete, there’s usually a thrust in the direction of the main trend – which in this case is down.

U.S. stocks could be on the verge of a deep and sharp multi- week decline. 


Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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