Alright, listen up, my chart-watching warriors! 🎯✨ We’ve got ourselves a spicy situation on the S&P 500 Weekly Chart, and it’s SCREAMING caution right now. 🚨
The big question? “Is this time different?” Spoiler alert: Probably not. Let’s break it down 👇:
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🚨 Bearish Divergence 101
First, let’s talk about the elephant in the room: BEARISH RSI DIVERGENCE.
📊 Price is making higher highs. (Woohoo, right? Wrong. 😬)
💔 RSI is making lower highs. (Oof. 🛑)
This is like your car’s engine light coming on while you’re flooring it. Yeah, it’s fun for now, but guess what? You’re headed for trouble.
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💀 Déjà Vu? History Doesn’t Lie!
Let’s roll back the tape:
1️⃣ Feb 2020: Bearish divergence showed up. Result? BOOM – the COVID crash. 💥📉
2️⃣ Jan 2022: Another divergence. What happened? The market went full bear mode for a year. 🐻🔥
And now? Here we are in Dec 2024, and the exact same pattern is rearing its ugly head. Do we really think this time is different? I don’t think so.
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👀 The Bearish Setup:
📈 Trendline Resistance: We’re right at the top of a multi-year rising trendline. This is a make-or-break zone.
💔 RSI Downtrend: The RSI is already sloping down, showing weakening momentum. Buyers are running out of gas. ⛽️💨
💡 Translation: This rally’s on borrowed time, folks.
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🔥 George’s Hot Take:
This is what I call a “SELL THE RIP” scenario. Here’s the plan:
1️⃣ Watch for a rejection near the current highs (6,050–6,100).
2️⃣ If we break below 5,800, it’s GAME OVER – bears take the wheel. 🐻
3️⃣ Targets? 5,400 is in the cards, and if things get ugly, we could be staring at 5,200.
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BUT WAIT… IS THIS TIME DIFFERENT? 🤔
You’ll hear the permabulls saying, “Oh, the market is resilient, blah blah.” Sure. But guess what? Patterns don’t lie.
If this divergence plays out like it has TWICE before, we’re looking at some serious downside. Don’t fight the charts, fam. 📉
Final Thoughts from the Bear Cave: 🐻
The S&P 500 is flashing warning signs loud and clear. This isn’t the time to be a hero. Play it smart:
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Tighten stops. 🚦
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Hedge your longs. 🛡️
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Be ready to SHORT if we break support. 🎯
Let’s see how this plays out, but remember: The charts always win. 👑 Trade safe, my legends. ✌️
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This post is originally published on ROADTOMILLION.
