SPX (S&P 500) – Double Top Rejection or Fakeout? Major BreakdownThe S&P 500 just got REJECTED at the key supply zone near 5,842, a level we’ve tested multiple times since Q1. This looks like a potential double top, and the rejection wick is no joke!
Here’s what’s cooking:
1. Strong Supply Rejection:
Price failed to break and hold above the 5,842 level – this zone has now acted as a wall for weeks. Clear signs of exhaustion from the bulls.
2. Bearish Setup in Play:
If price fails to reclaim 5,842 fast, there’s room to fall toward:
5,044.09 – Previous breakout zone
4,091.47 – Major demand (high volume node & previous consolidation base)
3. Clean Risk-to-Reward Bearish Play:
Short entries from the supply zone with stops above recent highs could offer great R:R down to the 4,000 zone.
4. Macro Context:
This rejection comes at a time when economic uncertainty is rising – a correction may already be in motion. Watch for institutional exits.
Trade Plan:
Bias: Bearish below 5,842
Confirmation: Break and close below 5,700 for momentum
Target Zones: 5,044 and 4,091
Invalidation: Daily close above 5,900
Is SPX done pumping or will bulls defend?
Drop your thoughts – Short or Long?
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