The S&P 500 has been climbing inside a rising wedge pattern, often seen as a sign that momentum is slowing down. At the same time, the RSI is showing lower highs, which hints at weakening strength behind the move.
Right now, the market feels like it’s waiting for a spark. That spark could come from the macro side — whether it’s rising bond yields making stocks look less attractive, political and trade policy uncertainty shaking confidence, or fresh worries about how much longer central banks can keep rates high. Any of these could act as the trigger for a break.
If the wedge breaks to the downside, the first key area to watch is the anchored VWAP from the April lows. That level has the potential to act as a support zone, since it represents where buyers stepped back in during the last big turnaround after the tariff scare.
For now, it’s a case of patience and levels: wedge support on the downside, VWAP from April as the bigger decision point.
Right now, the market feels like it’s waiting for a spark. That spark could come from the macro side — whether it’s rising bond yields making stocks look less attractive, political and trade policy uncertainty shaking confidence, or fresh worries about how much longer central banks can keep rates high. Any of these could act as the trigger for a break.
If the wedge breaks to the downside, the first key area to watch is the anchored VWAP from the April lows. That level has the potential to act as a support zone, since it represents where buyers stepped back in during the last big turnaround after the tariff scare.
For now, it’s a case of patience and levels: wedge support on the downside, VWAP from April as the bigger decision point.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.