S&P 500 Index

S&P 500 Technical Analysis – Potential Correction Ahead

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The S&P 500 is approaching critical historical resistance levels, just as economic headwinds begin to resurface — particularly the expiration of tariff ceasefire agreements and renewed trade tensions. These overlapping factors could signal an upcoming technical correction.

🔹 From a technical standpoint:
The index is forming a classic multiple-top pattern, typically associated with weakening bullish momentum and potential trend reversals.
However, we remain cautious and will only consider a bearish scenario if the 6200 support level is broken on a daily close.

📉 Proposed Trading Plan:
• Short entry: Only if the daily close is below 6200
• Stop-loss: Daily close above the last top
• Targets in order:
• 5800
• 5500
• 5250

⚠️ Note: Despite the bearish setup, we do not recommend rushing into selling without confirmation of support break.

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