$SPX500 Technical Analysis: Divergence Signals and Key LevelsOANDA: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.
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.
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.
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.
Happy Trading,
André Cardoso