S&P 500 Breaks Wedge Support, Eyes 6,500

In today’s technical analysis, let’s focus on the indices, particularly the S&P 500, which started the new week under heavy pressure.

The index opened with a bearish gap and continues to move sharply lower. From a technical perspective, the most important development is the breakdown below a key support level — the lower boundary of the rising wedge marked with red lines. This formation had been building for some time, and a break below the lower line typically signals a shift in momentum toward the downside.

After this breakdown, the next key level to watch is the horizontal support around 6,500 points, marked in green. This area represents a major technical barrier and can be considered the last stronghold for buyers in the current structure.

As long as the index remains above this green support, there is still a chance for stabilization and a potential rebound. However, if the price breaks below the 6,500 level, it would generate a proper long-term sell signal.

Such a breakdown would likely open the door for a much deeper correction, potentially reaching double-digit percentage declines from recent highs. For now, the focus remains on how the market behaves around this critical support zone.

Source: https://www.axiory.com/analytics/technical-analysis/s-p-500-breaks-wedge-support-eyes-6-500