SPX - Warning signs in the futures market

Despite our insistence on SPX moving to 3 500$ and 3 400$, it remains choppy between 3 700$ and 4 000$. With that in mind, we still have not changed our view and stay bearish on the index. We believe the market has not bottomed out yet, and there is much more downside in the future. Our thesis is based on the fact that the FED will continue to tighten monetary conditions, which will further weaken the U.S. economy. In addition to that, we are noticing sings of exhaustion in the futures market.

Illustration 1.01

Illustration 1.01 shows the trend in volume for the past few trading sessions. The recent decline with the price going up is bearish; therefore, we are very cautious.

Technical analysis - daily time frame
MACD is bullish; we will pay close attention to whether it can hold above 0 points; if not, it will be very bearish. RSI and Stochastic are bullish. DM+ and DM- are bullish as well. Overall, the daily time frame is bullish.

Technical analysis - weekly time frame
RSI and MACD are neutral. Stochastic is slightly bullish. DM+ and DM- are bearish. Overall, the weekly time frame is neutral.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Transaction en cours:

We would like to introduce the following setup: