S&P500 Is at a Critical Support|The Week’s Direction Starts Here

Feb 23

Today, I want to analyze the S&P 500 index(SPX500) at the beginning of the new week, because it’s one of the key indices in financial markets. Several assets, especially in the crypto market like Bitcoin(BTCUSDT), show strong correlation with it—particularly when the S&P makes sharp moves. So, for analyzing crypto markets, it’s better to have an S&P 500 analysis too. Stay with me.

The S&P 500 is currently moving near a support zone($6,877-$6,837) and support lines. Last week, the monthly pivot point($6,917.5) acted as a good resistance level for this index.

From a classical technical analysis perspective, especially candlestick patterns, on the 4-hour timeframe, we can see bullish reversal patterns: Bullish Engulfing Candlestick Pattern_Morning Star Candlestick Pattern.

From an Elliott Wave theory perspective, it seems the S&P 500 has completed five main impulsive waves on higher timeframes, so we might NOT see new all-time highs. On the 4-hour chart, it looks like we’re in a short-term downward trend to complete wave C of a zigzag correction(ABC/5-3-5).

I expect the S&P 500 index, at least in the short term, to attack the monthly pivot point. If that breaks, the next target could be $6,937.

First Target: Monthly pivot point($6,917.5)

Second Target: $6,937

Third Target: Resistance lines

Stop Loss(SL): $6,832(Worst)

Points may shift as the market evolves

What’s your outlook on the S&P 500 for the week? Should we expect a bullish continuation or a drop in the U.S. stock market?

Note: In case of escalating Middle East tensions in the coming days, we might see a sudden drop in the S&P 500. Thus, managing capital is crucial, especially these days when markets fluctuate more on news and statements.

💡 Please respect each other's opinions and express agreement or disagreement politely.

📌 S&P 500 Index Analyze (SPX500USD), 4-hour time frame.

🛑 Always set a Stop Loss(SL) for every position you open.

✅ This is just my idea; I’d love to see your thoughts too!

🔥 If you find it helpful, please BOOST this post and share it with your friends.

Feb 23

Note

SPX500 hit the first target, but for the third time it failed to break the key level around $6,920, then rolled over and broke below the support zone.

Now the main question is whether SPX500 can reclaim that support zone($6,877-$6,837) — or if this breakdown turns into a deeper pullback.

Feb 26

Trade closed: target reached

Full Target Done