S&P500 has dropped 28 points, or 1.2% from its intraday high of 2,401 on 1 Mar 2017. Is a correction coming?
Just to recap what I have mentioned on 24 Feb 2017 (see HERE), I wrote “S&P500 continues to be entrenched in an uptrend, as evidenced by its rising exponential moving averages (“EMAs”). ADX started to rise from 18 on 10 Feb 2017 to 34 on 24 Feb 2017, indicative of a trend. RSI closed at 80 on 24 Feb 2017. It is noteworthy that RSI only crosses above 80 on a couple of trading sessions in the past three years. Furthermore, based on RSI and MACD, S&P500 is overbought. Although S&P500 has crossed above 2,325 (which I previously mentioned it is unlikely to make a sustained close above), I am very cautious on S&P500 in the near term as the odds of a …