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S&P 500 Index
Short

$SPX500 Technical Analysis: Divergence Signals and Key Levels

162
SPX500USD

The SPX500 is currently displaying notable divergence on the daily timeframe chart, highlighting resistance near $6121 while the critical daily fractal support teeters at $5920.

Key Levels to Watch:

  • Support and Resistance Dynamics: The index faces significant resistance at $6121. Meanwhile, maintaining support above $5920 is crucial to sustain current bullish sentiment.


snapshot

  • Confirmation of Support Breakdown: A decisive drop below $5920 would signal a potential retest of the weekly fractal support at $5776. This level's breach would confirm a false breakout above resistance, potentially leading to further downside for the index.


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  • Potential Downside Targets: If the SPX500 extends its decline below $5776, attention should shift to the 161.8% Fibonacci extension, projecting a deeper correction towards $5557. This scenario sets the stage for a potential bullish shark pattern formation near the golden Fibonacci extension level.


snapshot

  • Technical Patterns: Previously identified patterns include a bearish deep crab around $6042, suggesting possible downside targets around $5737, near the .382% Fibonacci retracement level. A subsequent bullish shark pattern aligns with the .50% Fibonacci retracement level, reinforcing a critical zone for potential reversals.


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Happy Trading,
André Cardoso
Andre_Cardoso
I am a financial market analyst based in Porto, Portugal. I provide market forecasts to a group of professional traders, playing a crucial role in assisting them in making well-informed decisions in the financial markets.
Also on:
Chart Patternscrabpatternsharmonic_patternsHarmonic Patternssharkpatterns

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Disclaimer

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Chart Patternscrabpatternsharmonic_patternsHarmonic Patternssharkpatterns
Andre_Cardoso
I am a financial market analyst based in Porto, Portugal. I provide market forecasts to a group of professional traders, playing a crucial role in assisting them in making well-informed decisions in the financial markets.
Also on:

Related publications

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.