Finally, we got a divergence between the Advanced Decline Line and  SP500 price. Besides we have it with On Balance Volume and Insider Accumulation. Guys, with three divergences we have very big chances to see sell-off coming weeks. So, brace yourself and look for sell signals, like breaking below the trendline, etc. I don’t think it will be a massive crash, rather a healthy pullback and another buying opportunity. But let’s take it step by step – we are looking for sell signals with a possible target near 2600.

SP500, Bonds and Corn technical& fundamental analysis for 25 - 30 May 2020. Will stocks crash?

Bonds have a perfect setup for the rally and are still consolidating. It is taking too long. However, commercials continue to increase longs at such a high price! Besides, the seasonal indicator is up.

And have a look it On Balance Volume – it has broken to new highs. This market has to rally. So, look for buy signals.

I have small longs in corn in some of the managed accounts and I am looking to add once it starts to move. This market has a similar setup – commercials, seasonal, and insider accumulation. I wish those indicators could predict the time, but they don’t. However, patience pays.

Wishing you a great week!

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