The new week opened with the S&P 500 index still proceeding into the positive side. The index continued its way into an all-time-high with minimal effort as it acquired the last few points to attain it within the day. Given this news, it was expected that a follow through was to come later, pulling in more enthusiasm in the market and  bringing in more predetermined entries, giving us an energetic approach. The lack of this follow through only brings wariness in investing since it sets an irregular base for the index.

Meanwhile, there is a feeling of anticipation building in investors as they wait for the Federal Open Market Committee’s announcement of their decision on Wednesday. This can progressively put the necessary attraction on the index. However, the small gaps left in our judgment following this can only be filled up once the Federal Reserve’s announcement which can allow the market's to run. After Monday’s close, the results become apparent that Alphabet conglomerate experienced a fail to reach it with its earnings managing to get $9.50 per share versus the expected $10.10. This resulted in a deficiency in proceeds amounting to a total of half a billion dollars. Although, the technology sector of the market is not the only favorable contributor when it comes to equity, it is definitely the most distinguished.

Furthermore, the index proceeded in a pattern showing signs of topping, which warns us with a possibility of a declination into the future. Costs are noticeably failing to be maintained above the resistance level as indicated by last year’s high at 2947, recoiling into Monday session’s conclusion exhibiting a shooting star candlestick pattern. Joining this news was the uncooperative RSI divergence, signs of a diminishing rising impetus, which can eventually lead us into a reversal. Witnessing its appearance at the convergence of various resistance levels strengthens the possibility of the market of going into a bearish phase.

By: Cyril Latrice Cajanding