MASSIVE S&P500 Negative Divergence
Sang Shin argues that the S&P 500 is developing a highly bearish technical setup, combining a potential multiyear three-peaks-and-a-dome pattern, a pronounced weekly RSI divergence, weakness below the daily 9 EMA, tightening Bollinger Bands, and heavy call-side positioning. He concludes that a large move may be approaching, says he is currently short equities while remaining long oil, and views silver as unready for a clean breakout.
Preview · 4 more points in the app
Read the Full SummaryKey Points
Sang Shin argues that the S&P 500 may be entering the completion phase of a multiyear three-peaks-and-a-dome pattern, which he expects could be followed by a decline.
Shin identifies a weekly bearish divergence in which the S&P 500 futures make higher highs while the RSI makes lower highs, and he says the current divergence is more pronounced than the prior example.
He says the weekly RSI has now confirmed another lower high after failing to reset to 50, which he characterizes as a very bearish signal for stocks.
The analyst says the S&P 500 remains below its daily 9 EMA after a false breakout and a shooting-star candle, and he expects further downside unless the index convincingly reclaims that moving average.
S&P 500 Bearish Setup
The host outlines a potential multiyear three-peaks-and-a-dome pattern, weekly RSI divergence, and daily weakness that together suggest the S&P 500 may be nearing a major decline.
Bollinger Band Compression
Tightening Bollinger Bands indicate that a large move is approaching, while extreme call-side positioning leaves the market vulnerable to a sharp downside break.
QQQ Dark Pool Activity
The host discusses record QQQ dark-pool activity, emphasizing that it signals institutional repositioning but does not independently reveal whether prices will rise or fall.
Oil Breakout, Silver Consolidation
WTI and USO show bullish breakouts suitable for staged entries, while silver remains trapped in consolidation and lacks the clean breakout needed for a position.
Oil Demand And Reserves
The host argues that stronger-than-expected oil consumption means demand destruction is weaker, reserves are being depleted, and the fundamental case for staying long oil has improved.
Related Episodes
Important Disclaimers
Not Investment Advice: For education only — not financial, tax or legal advice.
AI-Generated: Made by AI from source transcripts and may contain errors.
No Guarantees: Past performance does not predict future results; investing carries risk.
Our Commentary · Request Removal