S&P Daily Bullish Divergence

There wasn't any surprising price movements in the S&P 500 or unexpected news that could act as catalyst for a bigger movement today. I do find a few interesting clues in the charts. Certainly, the Market declined at the beginning of the session but then it was able to recover. The 4,400 resistance is now a key level to monitor in order to see if the current rally will be an important one or not.

Starting with the daily chart of the S&P 500, I see a bullish MACD-H divergence. That means that the price got to a lower price, but the MACD-H indicator didn't confirm the force of the Bears since it got to a higher level than before (black arrows). If the Bears were so strong, why that force didn't get reflected in the indicator?

The same bullish divergence applies for the Keltner Channel (KC) bands, if you see how deep the previous low got, it was probably as low as the -4 or -5 KC. If you see the latest low, it barely got past the -3 KC (blue arrows).

Does this mean that the Market is ready to turn around, or a powerful rally is about to start? No, of course not, there aren't certainties in the Market. This is just a clue about the power of the Bears, which might be losing some power, and a potential rally that, if it happens, won't necessarily be a powerful rally.

Another reason for which I think a rally is possible is that the New Highs are strengthening against the New Lows in all the timeframes. I always look first at the Monthly timeframe which is the one that changes faster than the other ones I track.

If you want to see the full analysis that I did about this subject you can check my Weekend Market Overview in the link below. There are some signals that the Bulls might have some force, but as I keep repeating, no rally since Nov/05/2021 has lasted more than four days, and the current rally is beginning to stall.