S&P 500 Index made a stunning recovery by bouncing over 36% after the catastrophic crash in March. The recovery helped investors to recoup some of the losses, but the rally seems to be fading as the daily volume continues to decline.
S&P 500 Index Daily Chart (with Volume Indicator)
The volume flow indicator flipped negative with divergence shows a lack of interest from the investors. An increase in price accompanied by a decrease in volume is usually a bearish indicator.
S&P 500 Index Daily Chart (with Fib Retracement Levels)
Current recovery shows a retracement to 0.618 Fib level which usually is major resistance. It also coincides with a longterm horizontal resistance between 2940-2960 which S&P experienced since mid-2019. A failure to break this level means an end of the current rally with bears taking control for the near short term.
