Overhead resistance test = Possible weakness ahead

Mid-week market update; The S&P 500 has undergone a powerful rally off June's bottom, but it's now approaching technical resistance in the form of a 200 dma and a falling trend line. In addition, the market is overbought as measured by the 5 and 14-day RSIs, much in the manner of early November 2021.

Even if you are intermediate-term bullish, the convergence of these factors argues that it's time for a tactical pause and possible pullback.

The full post can be found here.