Dear readers, S&P500 finally broke the (one month plus) tight trading range 2,157 – 2,194 with a 2.5% drop yesterday. What’s next? Read on for more. S&P500 Index Just to recap what I have mentioned on 19 Aug 2016 (see HERE), I wrote “S&P500’s EMAs continue to move higher with a constant degree of separation which is a positive development. However, I am (increasingly) wary of two main factors namely, A) ADX continues to decline from 17.1 on 5 Aug 2016 to 15.9 on 19 Aug 2016, indicative of a lack of trend. B) Indicators such as MACD, MFI and RSI continue to exhibit bearish divergences. All in, S&P500 has met my eventual measured technical target 2,188. In the near term, S&P500 is likely to be met with strong resistance around 2,188 – 2,200.” –> Over the past three weeks, S&P500 hit another intraday ......