Possible double top formation – SPX (S&P500 Index).
Hopefully I won’t be seen as someone who wishes for there to be a market crash, because I am not. But I do admit I am overall bearish based on what is really happening in the charts. Sometimes you gotta look at multiple possibilities at once.
What you’re looking at here is a possible double top forming on the S&P500, as represented on the S&P500 E-Mini Futures. It is right now fighting the 2860-2880 level, a major resistance level. On the SPX itself, that is the 2860 level, which is where the main index is currently testing the level at this very moment of writing. If it breaks, down it’ll probably head towards 3,000. However, it it doesn’t then a double top pattern will form and that could send prices tumbling back down. BUT I may be wrong. All of my analysis is NOT investment advice.
What is the difference between SPX and SPY?
The main difference between SPX and SPY is that SPX is an index, whereas SPY is an ETF. This means that SPX value is directly correlated by the value of the underlying stocks comprising the S&P 500. SPY, on the other hand, is “influenced” by these very same stocks, but its price is set by buyers and sellers of the ETF. (Source: Seeking Alpha)
According to investopedia.com, The average annual return since adopting 500 stocks into the index in 1957 through 2018 is roughly 8% per year.