\tBut so far, they’ve struggled. And right now, the daily chart of the S&P 500 looks slightly more bearish than bullish. Take a look…<\/p>\n
\t![\"\"](\"http:\/\/assets.jeffclarktrader.com\/ee-assets\/channels\/articles\/Screen_Shot_2017-11-02_at_10.36.50.png\")
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\tThe S&P 500 made a new all-time high on Friday. But you can see how all of the various technical momentum indicators failed to make new highs. This “negative divergence” is often an early warning of a potential reversal.<\/p>\n
\tThe divergences can be eliminated if the market can rally hard enough to push the indicators to new highs. Frankly, though, if Friday’s massive buying binge couldn’t do it, and if yesterday morning’s big rally couldn’t do it, it’s hard to imagine what sort of move its going to take to get rid of the negative divergence.<\/p>\n
\tSo, any upside from here is probably limited.<\/p>\n
\tIf the S&P can close above the 2583 level, then I can make a case for a move up to the 2595-2600 area. But, if the negative divergence starts to play out, then keep a close eye on the 9-day exponential moving average line at 2570. If the S&P closes below that level, then there’s a good chance we’ll finally get a test of the 50-day moving average line – which is all the way down around 2517.<\/p>\n
\tBest regards and good trading,<\/p>\n
![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/div>\n\tJeff Clark<\/p>\n
\tP.S. <\/strong>Tonight at 8 p.m. EST (rebroadcast at 8 p.m. PST), cryptocurrency expert Teeka Tiwari is putting on a live training webinar to teach viewers all about the opportunity in cryptocurrencies.<\/p>\n \tHe’ll be sitting down with two cryptocurrency experts… showing viewers how simple it is to enter this market… and revealing one of his top crypto ideas for 2018.<\/p>\n \tTo sign up, click here<\/a>.<\/p>\n \tReader Mailbag<\/h2>\n