Where is the SP500 heading?

The S&P500 futures made a new record high in today´s session as positive sentiment does not seem to fade on the markets. Democrats plan to proceed with work related to President Biden´s 1.9 trillion USD package to aid the economy. Leaders from the Group of Seven industrialized nations will hold a virtual meeting on Friday, discussing the worldwide pandemic response.

While markets are making new records, technical analysis shows signs of caution. As the S&P500 edges higher, the Relative Strength Index shows a descending trend. At point A on the chart the index made a new high and the RSI rose above the 70 line. Since then the index has been rising, making new highs, reaching point B. But the RSI is making an opposite move and was lower at point B than at point A. This negative divergence might indicate that markets are losing momentum and ready for a pullback. However, the 4.000 level on the S&P 500 is acting as a magnet and the index could first reach this new record before investors take profit.