Market Analysis (14 July’21)

While the S&P500 has been advancing higher during the last several weeks, a lot of breadth and technical divergences have been formed. Given that the second half of July has historically been weak for the index, should we expect a potential pullback later this month?

SPX Seasonality

The second half of July has been historically weak compared to the first two weeks of the month.

Bearish Divergence

The SPX and its SPXA50r indicator formed a massive Bearish divergence over the last several months. The first divergence was formed last year and led to a 10% correction. Will history repeat?

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