Risk On Trade IS Back On Track

STOXX 50- Bullish pattern is here 
IBEX - traders battle with 50-day SMA 
S&P500: RSI showing divergence, bearish move ahead 

Risk on trade is back on track once again as China and US both showing willingness to open the dialogue on the trade war issue. Investors are clearly taking this as a risk on-event.
From a technical perspective, there is a clear divergence between the RSI and the price. The RSI has been moving lower since 8th of July while the price is still making higher high. This calls for caution. The bulls do have a support when we look at the 100 and 200 day-day moving average as the price is trading above that. If there is any retracement, the price may pull back to these moving averages but before that , we may see some re-test of the upward trend line.
The SPX index has formed a wedge pattern and the price is struggling to hold on to its gain. The battle between the bulls and bears is on and the price needs to stay above the all-important moving averages; 50,100 & 200-day moving averages. Bears are controlling the balance of the power, and this shows that the momentum is more in favour of bears.
The Stoxx50 is near its previous resistance zone and moreover, the price would also be challenged by the 200-day moving average-shown in pink. The daily average true range has dropped also and the price is trading in a narrow range. We also have the reverse head and shoulder pattern formed. This is a reversal pattern which usually brings a bullish move.