S&P 500 (SPX500) Weekly Market Outlook:
Index in Focus: S&P 500 (SPX500)
Timeframe: Weekly and Daily
Key Technical Patterns:
Ascending Trendline on the Daily timeframe
Major Correction Zone below 5,000 level
Analysis:
Daily Ascending Trendline:
SPX500 has been moving within a strong uptrend, as indicated by the ascending trendline on the daily timeframe. However, the price has reached a crucial resistance zone just under 6,000. This level is critical, as a rejection here could signal a significant corrective phase.
Correction Zone and Targets:
The chart suggests that the market is poised for a deep correction if the price breaks the trendline. The first downside target lies at the 5,000 level, which is a psychological support, and further movement could push the index down to the 4,844.37 area, as seen on the chart.
Trade Setup:
Given the possible rejection near 6,000 and the break of the ascending trendline, we are focusing on sell opportunities in anticipation of a larger market correction.
Key Targets:
First Target (TP1): 5,000 (psychological level)
Second Target (TP2): 4,844.37 (next major support)
If the price continues below these levels, we could see an even deeper correction into the lower trendline zones.
Conclusion:
The S&P 500 is at a critical point where it faces potential downside pressure. Similar to the USD/JPY setup, this index is showing signs of a major correction as momentum weakens near key resistance levels. Keep an eye on the 5,000 level for possible support, but be ready for a bearish move if that level breaks. Stay vigilant for selling opportunities on pullbacks during the week!
