Looking at this SPX Daily Chart, we’re seeing some clear signs of weakness in the market.
Breakdown from the Rising Channel – After months of uptrend, SPX has broken below its previous rising channel, signaling potential downside ahead.
Failed Recovery Attempt – The recent bounce formed a bear flag (highlighted in brown), but today’s sharp drop indicates that the relief rally has been rejected.
Key Fibonacci Levels in Play –
- The 0.382 Fib retracement was acting as support, but price has now slipped below it.
- Next key level: The 0.5 Fib (around 5,550) and the 0.618 Fib (near 5,438) could act as crucial support zones.
- A deeper retracement to 4,982 (0.786 Fib) isn’t out of the question if selling pressure accelerates.
Moving Averages & Volume –
- The price is now under the 200-day moving average (blue line), which is typically a bearish signal if confirmed.
- Volume has been increasing on red days, hinting at stronger selling conviction.
Support & Resistance Zones –
- Resistance: ~5,822 (recent bounce level) and ~6,097 (previous high)
- Support: ~5,402 and ~4,982 if selling intensifies.
Final Thoughts: The technical structure is turning bearish, and if the S&P 500 doesn’t reclaim key levels soon, further downside could be on the horizon. Bulls need to step in fast to avoid a deeper correction.