S&P 500 Holds Key Supports Despite Risk-Off Open

In today’s technical analysis, let’s take a look at the S&P 500, which opened the week under pressure after a tense geopolitical weekend.

The failed talks between the United States and Iran, along with reports of disruptions around the Strait of Hormuz, triggered a clear risk-off reaction at the open. Index futures started the week with a bearish gap.

However, the first hours of trading brought a noticeable recovery attempt. Buyers are stepping in, at least in the short term.

From a technical perspective, the key point is that despite this negative start, the long-term structure remains intact.

The price is still holding above several crucial supports:

• The green neckline of an inverse head and shoulders pattern
• The black mid-term uptrend line
• The red mid-term trendline

As long as the price stays above these levels, the broader sentiment remains positive.

This means that, for now, the bearish gap is more of a reaction to news rather than a structural breakdown.

A real shift in sentiment would require a break below the key supports, especially the neckline and the uptrend line. That would open the door for a deeper correction.

But at this stage, buyers are still in control, and the uptrend is technically still valid.

Source: https://www.axiory.com/analytics/technical-analysis/s-p-500-holds-key-supports-despite-risk-off-open