U.S. indices uneasy ahead of FOMC minutes and NVIDIA earnings

Today is a big day, with the NVIDIA earnings being scheduled after the U.S. market close and FOMC minutes coming out about two hours before that. While waiting for these releases, we would like to discuss several developments in the market. First, the SPX’s price is flirting with the bullish trendline connecting important troughs on the 4-hour chart. Second, the RSI’s structure, resembling a triangle on the daily chart, became broken yesterday. Third, the MACD became inverted on the daily time frame and now points to the downside. Fourth, the Volatility S&P 500 Index is relentlessly trying to advance higher. All of these signs suggest a (some) loss of bullish momentum and are slightly concerning.

Illustration 1.01
Illustration 1.01 displays the 4-hour chart of SPX and a bullish trendline, which the price is flirting with; a breakout to the downside will be concerning (especially if accompanied by another spike in the VIX).

Illustration 1.02
The image above shows the daily chart of the SPX’s RSI. The yellow arrow highlights the bearish breakout.

Illustration 1.03
Illustration 1.03 portrays the daily chart of MACD. The yellow arrow indicates a bearish inversion.

Technical analysis gauge
Daily time frame = Neutral
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.