The S&P 500 futures are flashing a double RSI divergence. This could call a short term top after the massive runup in the stock market. For bears, this could offer some short term day trade or swing trade shorts. For bulls, this could be an opportunity to wait for a pullback to get long again.
We highlight how RSI Divergences have called some major swings in the S&P futures including the short term top in July 2023 and the low at the end of October 2023.
Additionally, we see a divergence between the S&P 500 and the VIX with both making higher lows recently.
We have been focused on the long side in the futures and captured the move on Friday taking long trades. It's been a euphoric runup as we go into a bit of a holiday type mood with the Super Bowl.
It should be an interesting week in the markets.
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