S&P 500 ,,, Update
The chart has reached a major support area, despite the presence of large emotional bearish candles. While taking a position at the V-shaped pivot point carries some risk, the market may react emotionally given its previous decline like the 2020 correction.
This support area is comprised of:
- A significant pivot point from January 2022
- A PRZ (Potential Reversal Zone) between the 50-61.8 Fibonacci retracement levels
- The 100 Fibonacci extension level
- Support from a valid trend line
Trend changes can be unpredictable, and opinions may vary among traders and analysts. However, this presents a low-risk opportunity to consider new buying positions once clear signs of a trend reversal emerge.
It's essential to be patient and wait for the right moment to act.
SPX trade ideas
Bear With Me: When AI Spending disturbs the hibernationSpent too much time coding and cycling today, so no time for a video.
Now we know for sure: it was a deeper correction, and it’s indeed too close to a bear market to be ignored. What's next?
I think the tariff war merely anticipated something that was bound to happen sooner or later: the AI bubble burst. For me, that explains why the NASDAQ entered the bear market first. Big tech was very bold in announcing billions of dollars in AI spending, yet many investors—mostly clueless about what this means for future growth—weren’t ready to accept it.
However, the Trump maneuver isn’t straightforward and could lead to real complications. Without diving into macro analysis (which I admit is beyond my expertise), here are some scenarios derived from the chart:
A – We bounce off the confluence of two major supports: the ascending wedge, the lateral from the 2021/2022 top, and the AVWAP anchored there. It’s a real possibility that we could simply bounce from here and reach a new ATH. However, even in this scenario, I doubt we’ll see the sun before the dark. The AI bubble has to burst before the real winners in that race can show their value. So, we may experience a blow-off top, only to return to bear market territory—possibly by the end of the year or next year.
B – We lose this critical support and head for the hills.
C – We bounce off the next level down and march back up (very unlikely, in my opinion).
D – We complete a bear market with over a 50% correction. The downside could be harsh, with many whipsaws and false hopes along the way.
I’ve never been this bearish in my life. Yet, I remain very bullish on AI. I’m at least 10x more productive with AI, and I believe everyone will be—and so will every company making the right moves. That will create amazing opportunities for traders.
But until then… brace yourself.
SPX500 & Nasdaq: Confluence! Confluence! Confluence!With consumer confidence off at circuit breaking levels, the market, technically, has reached extreme levels of support. Let's look at it:
Technicals:
(1) Horizontal Levels of support
(2) 50%/61.8% fib confluence
(3) exDiv1
(4) extreme indicators
(5) Chikou span testing cloud support
(6) 28% drop is SPX
All of these levels are lining up around the same location. And just like in real estate "Location! Location! Location!" is the adage; in markets, "Confluence! Confluence! Confluence!" is the adage!
Maybe This is all a Big Head and Shoulders.This is feeling suspiciously like honey trapping of the bears and I think there's fair odds we're going to see a strong squeeze starting now and lasting over at least the next couple weeks.
This could easily take us to 5800 or so inside of the head and shoulders setup
This is a test on SPX500Short thesis for SPX500
🚨 Market Alert: SPX500 Approaching Critical Zone
(April 6, 2025)
Volatility (VIX) just surged to 45—markets are feeling significant fear. This creates high-quality swing-trading opportunities.
🎯 Why this area is important:
Key Support Flip: Previous strong weekly resistance could now act as critical support.
High-Timeframe Imbalance: SPX500 is retesting the exact demand zone that launched the powerful rally from October 2022 → February 2024.
50% Fibonacci Level: Perfect retracement to the midpoint of the entire 2022–2024 bullish leg.
⚠️ What I'm watching for (No-Chase Method):
✅ Lower-timeframe liquidity sweeps + Break of Structure (BOS) as confirmation.
✅ Volume spikes indicating smart-money engagement.
✅ Signs of VIX easing (below ~35), reinforcing bullish reversal thesis.
SPX updateSP500 E-min futures opened 200 pnts lower as I predicted. I have to make frequent updates because of the fast changing environment. This is just reading the market and you all can do it with practice.
Volatility on futures options has crossed 100! My God! I have never seen such readings. With SPX being at key level at 2022 peak and also at HVN, some positive news from Trump adviser that 50 countries want to negotiate with Trump, I see the market rally to 5000 very likely Monday open or close.
But I still believe 4150 as final resting place. I dont see any crashes below 4800 except 150 points near the target, as far as I can read.
But outside the readings, I do suspect a banking crisis like 2008 is looming. That would change everything because Trump is against bailouts. We will see when that happens
SPX Important update: Crash of 200pnts on MondayThree days back I had warned of a crash which did materialise beyond my expectation.
Today again based on the same VP analysis and additionally major trendline break principal I am predicting a 200pnts crash on Monday as we have enter a major low volume region. I hope I am wrong for the sake of all those who are still invested
The market achieved the first target of green trendline break and is now touching the red trendline. Since the price is close to the LVN's another crash is extremely high probability. Had it been near a HVN, I would expect a bounce. The next target coincides with the 2023 Oct bottom. But 4800 (peak of 2022) could offer some support and then 4120
Major trendline break principle is: when a major trendline is broken the price will mirror the rise and fall an equal distance from the breakpoint as from the high to the breakpoint. Check my related post where I show many such cases
S&P 500 Records Largest Weekly Decline Since 2020The S&P 500 Index has suffered its steepest two-day drop since the pandemic crash in March 2020. On April 4th, 2025, the benchmark index closed at 5,074.08, down 322.44 points (5.97%). This marks a loss of $5.4 trillion in market value across just two sessions.
The sell-off followed comments from Federal Reserve Chair Jerome Powell. He warned that President Donald Trump’s new tariffs could lead to persistently higher inflation. All 11 sectors in the S&P 500 closed in the red. Only 14 stocks remained positive as Nvidia and Apple fell more than 7%, while Tesla dropped 10%.
The Nasdaq 100 Index plunged 6.1%, confirming a bear market after losing over 20% from its February peak. The rapid decline mirrors the speed seen during the 2020 COVID crash and the 2000 dot-com bust.
President Trump announced sweeping tariffs on U.S. imports on Wednesday. These include a 10% general tariff and higher rates on dozens of countries. China responded by imposing a 34% levy on American goods. The tit-for-tat measures triggered fears of a full-scale global trade war.
Global markets reacted sharply. Investors pulled out of stocks and moved into safer assets like government bonds. The two-day loss of $5 trillion on the S&P 500 set a new record, surpassing the $3.3 trillion loss during March 2020.
Rick Meckler, of Cherry Lane Investments, said the escalation is now deeper than many investors expected. The initial belief that tariffs were a negotiation tactic has now given way to serious market concerns.
Technical Analysis: Price Approaching Key Support Zones. Will They Hold?
The S&P 500 has shown a bearish trend since early 2025. Several weekly candles have closed bearish, confirming a strong downtrend. Currently, the index is trading lower toward a key ascending trendline near $4,930.
The $4,930 support level may offer short-term support. A bounce from here could see a brief recovery. However, the sentiment remains bearish without strong economic data or policy changes.
Further Downside Risk If Support Fails
Another horizontal support sits at $4,780. If both support levels fail, the index may fall toward the $4,500 psychological zone. This level is crucial as it marks a long-term support and potential reversal point.
At present, bearish momentum dominates, with much strength coming from trade war fears. Unless data shifts investor sentiment, the downtrend may persist.
SPX500: The trendline show a bottom in Sept 2025 at 4700 We're being magnetically pulled toward the trendline bottom around 4700.
Based on the current MACD and RSI signals, the bearish scenario could continue until September–October 2025. This correction is very similar to the one from 2022.
There will be some dead cats bounces, but do not be fooled, the MACD is reseting hard.
Stay sharp. Be ready.
DYOR.
SNP500 / SPX🔍 SPX/USDT Analysis: Daily Timeframe 📉
SELL IT!
The SPX chart on a daily timeframe highlights significant upcoming dates where price movements may present trading opportunities. These should be analyzed in conjunction with higher timeframes for a comprehensive market view.
• September 3, 2024 - Red Line: This date marks a potential local peak. Traders might consider this as a moment to take profits or reduce exposure, as the price could encounter resistance or a downturn.
• December 6, 2024 - Red Line: This date is another potential local peak, signaling a possible moment to exit positions before a downturn.
When working with this daily timeframe, remember to evaluate these movements within the context of the broader market trend, considering higher timeframes for a more global perspective.
Note: The exact timing of these phases can vary by +/- a few days. All times are based on UTC-7 (Los Angeles).