FX.co ★ Technical Analysis for S&P 500 for December 10, 2020

The S&P 500 has run into major resistance near 3,700 and all red lights is flashing for a possible top being in place. The pitchfork resistance line has rejected the advance. The RSI indicator has flashed a negative divergence warning more than a month now also indicating a possible top could be nearby. All that's needed now is a clear break below 3,594 to confirm that a top has been seen and a correction is unfolding.

So, the big question is how low can we go? Important support at 3,385 should be tested and a break below here will call for a much deeper correction towards 2.946 and maybe even closer to 2,100.

Thus, be ready for a possible deep dive and keep you stops tight.

The trend and patience are your friends, but sometimes the trend needs a reaction and that time is likely now.