S&P 500 Index
Long

SPX Fractal Expansion: New Highs Ahead Despite Fear

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As of April 14, 2025, the SPX is exhibiting a clear fractal expansion, suggesting the beginning of a new bullish leg. The recent correction, which caused widespread panic, appears to have completed a fractal cycle reset, with price respecting historical support near 4704 and forming a new fractal edge around 5300.

Despite the fear-driven selloff, momentum indicators like RSI and MACD show signs of bottoming, and volume surged on rebound days, confirming strong institutional buying. The price is now testing temporary resistance at 5878, with a path open to reclaim all-time highs (6100+).

Global & Technical Tailwinds
  • Technical momentum is recovering across timeframes, with positive divergence on stochastic oscillators.

  • Breadth is improving: More stocks are participating in the rally, reflecting internal strength.

  • Sentiment has flipped: The VIX has cooled from panic levels (above 45), and investor fear is easing.

  • Macro support: Inflation is declining, and central banks are signaling potential rate cuts by late 2025.

  • Earnings outlook remains solid, and analysts forecast SPX to end 2025 around 6500–7100.


🔍Conclusion
The SPX is carving out a fractal mirror of past bullish reversals, reinforced by strong macro and technical context. Barring unexpected shocks, the index is likely to break above resistance and push toward new highs, even as residual fear lingers. The setup favors buying dips within this emerging structure.

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