S&P 500 Index
Short

S&P 500 Bearish Reversal Setup: Short Entry Below Key Resistance

1 582
Entry Point: Around 5,678.79

Stop Loss: Around 5,833.61 (above recent resistance zone)

Target Point: Around 4,831.37 (indicating a bearish target)


2. Technical Patterns:

The price hit a resistance zone (highlighted in purple) and reversed—this is often a bearish signal.

The trendline break (marked with the orange dot and blue arrow down) suggests a potential trend reversal.

The moving averages (likely 50 EMA and 200 EMA) indicate the price is still above the support zone but weakening.


3. Risk/Reward Ratio:

Risk (Stop Loss – Entry): ~154.82 points

Reward (Entry – Target): ~847.42 points

Risk/Reward Ratio: Approximately 1:5.5, which is favorable for shorting.


4. Trade Sentiment:

Bearish bias based on the breakdown from the resistance zone and confirmation from chart patterns.

If the price fails to hold above 5,682.87, a short trade may be validated with the target at 4,831.37.

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