S&P500 – Rally is losing momentum


S&P 500 – had extremely nice rally from march 09 lows but going into mid may as seen at graph below rally is losing momentum (MACD diverging). I think market is about to correct overbought (RSI is very high) conditions in SPY with possible target on downside around 875 area. I am not bearish on bigger picture but i think we are about to get in range bound market going into summer.

spy

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