The corrective phase of the S&P
In my view, the S&P 500 index is forming a diametric pattern in the long-term timeframe, with wave (E) currently nearing completion. Following this, the index is expected to enter a corrective phase, which could involve both price and time corrections:
- The price correction may extend to the range of the drawn box, potentially dropping the index to 3,500 points.
- Alternatively, the price could decline to the 4,700–4,800 range and then consolidate over time to complete the time correction.
Good luck
NEoWave Chart
SPXM trade ideas
S&P 500 & the Presidential Cycle: Bear Market in 2026?The U.S. presidential cycle is a cyclical approach to the stock market suggesting that S&P 500 performance tends to follow a recurring pattern over the four years of a presidential term. This cycle reflects the relationship between political decisions, fiscal and monetary policy, and investor psychology.
Historically, the first year of the term (post-election) is marked by economic and fiscal adjustments, often accompanied by moderate gains. The second year, known as the “midterm year,” is usually more hesitant: markets tend to be volatile amid political uncertainty and potential unpopular reforms.
This second year of the presidential cycle is typically the weakest of the four and the most prone to a significant S&P 500 consolidation — corresponding in our case to the year 2026.
In contrast, the third year of the term almost always stands out as the most favorable for equities, as the administration seeks to boost growth ahead of the next election campaign, often through more accommodative fiscal or monetary measures. Finally, the fourth (election) year tends to remain positive on average, although performance often flattens as electoral uncertainty increases.
From this perspective, 2026 will mark the second year of Donald Trump’s presidential cycle — traditionally the most fragile for equity markets. From a technical standpoint, the S&P 500 has recently reached major resistance zones near its historical highs after a strong post-election rally. Several momentum indicators now show signs of exhaustion, while Shiller’s P/E ratio stands at historically elevated levels, indicating stretched valuations.
In this context, it is plausible that 2026 will bring a phase of consolidation for the S&P 500, or even a more pronounced correction. Institutional investors may adopt a more cautious stance, awaiting greater clarity on fiscal trajectories, Federal Reserve rate policy, and the impact of new government measures. This cooling phase would be natural after several years of sustained growth and could form a healthy foundation for the next bullish impulse, traditionally observed ahead of the pre-election year — 2027.
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SPX500 H1 | Bullish Bounce from Key SupportBased on the H1 chart analysis, we could see the price fall to the buy entry, which is 6,732.79, which is a pullback support and oculd bounce from this levle to the upside.
Stop loss is at 6,719.64, which is a pullback support.
Stop loss is at 6,697.83, which is a pullback support that lines up with the 38.2% Fibonacci retracement.
Take profit is at 6,762.34, which aligns with the 127.2% Fibonacci extension and the 100% Fibonacci projection.
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SPX: jobs delayed, but not the optimismThe key development in the U.S. last week was the federal government shutdown on October 1st, triggered by Congress’s failure to pass a funding bill. Markets had only a mild reaction to the news, and continued to be focused on broader economic development. Still, jobs data which were set for a release during the week, were not posted, due to the “shutdown”. Regardless, posted JOLTs Job Openings in august of 7,227M were slightly better from forecasted 7,2M expected by the market, which pushed the market optimism toward the increased expectations that the Fed might cut interest rates again this year. The S&P 500 marked another winning week, with a new all time highest level this year at 6.746.
Tech companies continue to be in focus of market attention. Nvidia and other AI-adjacent firms continued to lead the rally, pushing the S&P 500 to fresh highs. Fair Isaac jumped around 18% after unveiling a plan to let lenders access its credit scores directly, hurting traditional credit bureaus like Equifax and TransUnion. On the opposite side was Palantir, which dropped by around 7,5% following security concerns in the U.S. Army memo.
Investors perceive currently a mixed private-sector jobs data for September, as weak enough to support the Fed's decision to cut interest rates further at their forthcoming meeting as of the end of October. Based on these expectations, the S&P 500 might be further supported for new highs, as per investors sentiment.
$SPX $ES_F SUPERTREND is an indicator you should learnSP:SPX $ES_F SUPERTREND is definitely an indicator you should learn how to use.
What's funny is it doesn't act the way you likely originally think it works, so learning to read it well can give you a huge edge. Look at where we got smacked down today, right at supertrend. We got the signal Friday, moved up to it yesterday, tested it today and got smacked down.
So beautiful!! So if you have Super trend and the 35EMA you have everything you need. For ES Traders you should be checking these levels on Regular Trading hours not Electronic, once in a while.
SPX500 Tests Highs as AI and Rate-Cut Hopes Support RallySPX500 – Technical Overview
The S&P 500 continues to trade near record highs as AI strength and renewed rate-cut optimism offset lingering concerns from the U.S. government shutdown.
Markets remain supported by expectations of further Fed easing, though volatility may persist around key resistance zones.
Technical Outlook
The index is testing the previous week’s highs around 6,755–6,727.
A 1H close below 6,727 would confirm a short-term bearish correction toward 6,699 → 6,662.
Conversely, a 1H close above 6,755 would reinforce bullish momentum and open the way toward 6,770 → 6,791 → 6,820.
Pivot: 6,755
Resistance: 6,770 – 6,791 – 6,820
Support: 6,727 – 6,716 – 6,699 – 6,662
S&P 500 Faces Earnings Test Amid Shutdown Fog and Tariff FearsStocks Face Earnings Test as S&P 500 Heads for Worst Shutdown Performance Since 1990
The S&P 500 slipped on Friday, just two days after hitting a record high, as renewed tariff fears and the ongoing U.S. government shutdown weighed on sentiment.
This week marks a key test as major Wall Street banks open the third-quarter earnings season, potentially offering direction amid what analysts call a “vacuum of government data” due to the shutdown.
On Wednesday, the S&P 500 logged its 33rd record close of 2025, even as the shutdown that began October 1 dragged on. But Trump’s threat of a “massive increase” in tariffs on Chinese imports erased gains, leaving the index down 2% since the shutdown began — its worst such stretch since 1990, per Dow Jones Market Data.
The delay of key reports like CPI inflation data has added “fog” to the market, making it harder to gauge the impact of tariffs on core prices. Still, analysts expect solid Q3 results, especially from banks, with FactSet’s John Butters noting a rare increase in EPS estimates — the first since late 2021.
Volatility Returns — But Will Investors Buy the Dip?
October, historically the most volatile month, lived up to its reputation.
Friday’s drop left traders debating whether it was triggered by Trump’s post or simply profit-taking after record highs.
S&P 500 – Technical Outlook Merging with Fundamentals
The price dropped sharply by $165 within just six hours, reflecting strong volatility driven by both technical factors and fundamental uncertainty.
From now on, market movements are expected to remain highly sensitive, especially as third-quarter earnings season begins this week — a phase that could significantly influence the indices amid the ongoing U.S. government shutdown.
Technically, a short-term correction is expected toward 6550 – 6577 before renewed bearish pressure resumes.
However, if the price closes a 4H candle below 6484, it would confirm continuation of the bearish trend toward 6450 and 6425, with further downside potential toward 6347 and 6283.
On the other hand, as long as the price trades above 6506, buyers may attempt to correct the move upward toward 6550 – 6577.
A sustained break below 6484, however, would clearly reestablish the bearish momentum.
Pivot Line: 6506
Support Levels: 6450, 6425, 6348
Resistance Levels: 6550, 6570, 6620
Summary Expectation:
Next likely direction — bearish continuation, possibly after a minor corrective pullback toward 6,570 – 6,600, unless buyers reclaim control above 6,620.
Bigger correction down for SPX500USDHi traders,
I called the top in my outlook of last week for SPX500USD.
After a small correction last week it went up one more time to make a new ATH. After that it dropped.
Now it started the bigger correction down.
So next week we could see a correction up and more downside for this pair.
Let's see what the market does and react.
Trade idea: Wait for a correction up and a change in orderflow to bearish on a lower timeframe to trade shorts.
If you want to learn more about trading FVG's & liquidity sweeps with Elliott wavecount and patterns, then please make sure to follow me.
This shared post is only my point of view on what could be the next move in this pair based on my technical analysis.
Don't be emotional, just trade your plan!
Eduwave
SP500: Breaks Out Of Channel, Steps Into Wave Four I hope you had a nice weekend despite that nasty turn lower on stocks we saw on Friday. As you know, the move came after Trump threatened to impose new tariffs on China, following China’s own restrictions and tighter export controls on rare earth metals, which are crucial for the tech sector. We’ve seen this story before back in April, and if tariffs come back into focus again, traders will likely react with fear — so it’s not a surprise we saw such a strong drop in stocks on Friday.
Normally, markets are most sensitive when this kind of news first hits, and then they tend to stabilize afterward. What’s interesting, though, is that despite the strong sell-off in stocks, the dollar index didn’t show the kind of sharp upside reaction you’d usually expect. So I’m wondering if stocks can find some support, but seems like this can be only wave B rally, since we are in the middle of wave four retracement. Keep in mind there is an open gap lower on futures.
Big supports is at 6400 and 6200.
Grega
US 500 Index – Limited Correction Or Sentiment Reversal?With all the talk in the financial press last week of a potential AI bubble, soaring volatility in the precious metals market, and an on-going US government shutdown, perhaps it was understandable that traders were a little on edge going into Friday. So, when President Trump’s new threats of 100% tariffs on China were posted on social media late in the afternoon the reaction was a big downside correction, which saw the US 500 drop around 3.6% from its all-time highs of 6769 seen just a day earlier to a low of 6508.
Since then, comments from President Trump and Vice President Vance over the weekend regarding China have seemed to be more conciliatory in tone, signalling an openness to get back to the negotiating table and hammer out a deal in some form. This has seen all markets breath a small sigh of relief and led the US 500 to open higher, currently trading up 2.2% around 6650 (0800 BST). However, whether this positivity continues may depend on multiple factors, including the technical outlook (more on this below).
While trader sensitivity to the next round of comments from the US and Chinese administrations regarding the on-going trade tensions could remain high, they may also be keen to receive the latest Q3 earnings from the major US banks, with JP Morgan, Goldman Sachs and Citigroup reporting on Tuesday (before the open), then Bank of America and Morgan Stanley reporting on Wednesday (before the open). While the focus may be on assessing actual performance against expectations, it could also be important to hear the outlook for future revenue, the direction of US economic growth and the size of bad debt provisions.
Federal Reserve Chairman Jerome Powell also speaks on Tuesday at 1720 BST and with the US government shutdown delaying the release of the most recent inflation updates (CPI/PPI) which were due this week until later in October, any comments he makes regarding the inflation outlook or the potential for an October Fed rate cut could take on extra significance.
Technical Update: Limited Correction or Sentiment Reversal?
Headline-driven price sell-offs like the one experienced on Friday (Oct 10th) are unpredictable, underscoring the importance of disciplined risk management. If you're long of an asset during such volatility, having well-placed stop-losses is crucial to limit downside exposure, especially when liquidity starts to reduce, as it likely did ahead of today’s US holiday. These events serve as a reminder that protecting your trading capital is just as important as delivering profitable outcomes.
After such a sharp sell-off, the question is whether it marks a brief, exaggerated correction within a broader uptrend or signals a deeper negative sentiment shift that could lead to further price weakness.
The answer may well depend on how the price of the US 500 reacts in the upcoming sessions. Whether support levels hold, momentum stabilises, and buyers return or whether the price decline deepens and the next support levels give way.
The jury may still be out on this, but as the chart above shows, judging the potential key support and resistance levels could help gauge the next directional risks. A closing break of either side may offer signals to the next phase of price activity.
If the Sell-Off Reflects a Negative Sentiment Shift:
Friday’s sharp decline may have already breached some initial support levels, raising the risk of a more extended phase of price weakness.
The daily Bollinger mid-average (currently 6668) is typically viewed by traders as a support level in an uptrend and this level was broken on a closing basis within Friday’s decline. Despite this morning’s rally, 6668 could now act as a resistance, and if it remains intact, could keep upside activity in check for now.
While 6668 resistance holds on a closing basis, this morning’s recovery may be viewed by some as a reactionary bounce following Friday’s sharp decline, leaving possibilities of renewed selling pressure later in the week.
If this proves to be the case, closing breaks below potential support at 6550, a level which is equal to half the rebound from Friday’s low, might lead to renewed downside pressure. This may open tests of 6490, the 50% retracement of the August 1st to October 9th rally, with a closing break below this level, suggesting scope for moves toward 6224 which is the 61.8% retracement.
If the Sell-Off Proves to be a Limited Correction:
While Friday’s decline was sharper and larger than any since the June 2025 lows, traders may now be watching whether current price strength can close back above the 6668 Bollinger mid-average.
While not a guarantee of renewed price strength, past declines since June 23rd 2025, have seen US 500 prices recover to close back above this line, leading to resumed attempts at upside strength. A closing break back above 6668 may once again open attempts to push to higher levels.
If confirmed, a break above resistance at 6668 may lead to further upside back toward 6769, which is the October 9th all-time high. Should this level give way, further strength may extend toward 6866, which is the 38.2% Fibonacci extension of last week’s sharp decline.
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SPX: Tariffs 2.0 slams marketSPX stumbles as trade tensions resurface, feeding volatility into Friday's close. Friday was a painful day on financial markets, with a correction of 2,71%. For one more time it all started with the announcement on social networks of the US President that the US will impose 100% tariffs on imports from China starting November 1st. The rest is history - around $2 trillion from markets was wiped out. A similar situation occurred in April this year, when the never-ending story about tariffs started. Finally, the market settled that around 40% tariffs on imports from China would not impact the US economy at the higher level. However, analysts are estimating that the 100% tariffs might hurt the US economy more severely.
Semiconductor stocks like Nvidia and AMD led Friday’s market decline. Nvidia fell 5% amid uncertainty over its efforts to gain approval from the U.S. and China to sell downgraded AI chips. AMD, which had recently driven the tech rally, dropped nearly 8%. Apple and Tesla also saw sharp losses, down 3% and 5% respectively. However, the pullback wasn’t limited to China-exposed names, it was a broad-based sell-off, with 424 of the S&P 500 stocks closing in the red. The magnitude of the drop forced institutional investors to de-risk across the board, selling other positions to cover losses and raise cash as tech dragged portfolios lower. Only a few defensive names, including Walmart and tobacco-related stocks, managed to end the day slightly higher.
The current question is what does Monday bring? On one side, investors might continue to perceive tariffs impact negatively, so the correction might continue. On the opposite side are investors who will be in the mood of wait-and-see if a current threat of 100% tariffs will actually come to effect, or some sort of agreement on the state levels will be achieved.
Applovin Craters...Is Robinhood next? APP fell sharply intraday today after announcement came late into the session about an SEC probe into the company.
The SEC loves to do this with new S&P500 stocks.
Applovin was one of the strongest stocks in the market recently and its finally been knocked back down to earth.
You have to wonder if HOOD will be the next SEC probe.
Robinhoods controversial NFL prediction markets could a big controversy.
Crash ... 10 % and up 6760 is very important Pivot that price can`t pass for many reasons :
its 720 GANN angle since the uptrend begins in apr 2025 @ 4840
and it comes with upper trend that contain the price and face it down evey time it touch
Now . its matter of time before the movie start
This is how the big whales punish you when you trade in the markets
Gold at a record high
The dollar is also rising
Bonds are rising
Political tensions are increasing
Inflation is rising
Unemployment is increasing
Government shutdown
High tariffs
Yet the market hits a new record every other day by day
Patience is a virtue
Wait for a 10-15% crash before the end of the year
After they wipe out the sellers, as they always do
have a sit , have a kit kat
S&P500 Uptrend continuation supported at 6696 The S&P 500 (+0.36%) climbed to another record high, showing resilience despite political uncertainty in Europe and the ongoing US government shutdown. Gains were driven largely by a massive 23.7% surge in AMD after news that OpenAI will purchase tens of billions of dollars’ worth of its chips, making AMD the standout performer in the index.
Even though over half of S&P 500 constituents declined, tech strength — led by AMD and NASDAQ’s 0.71% advance — lifted the broader market. After the close, news of the US government taking a 10% stake in Canada’s Trilogy Metals (up 215% in after-hours) reinforced investor focus on critical minerals.
Gold eased slightly from the $4,000 mark but remains strong amid global uncertainty, while Tesla’s upcoming launch of a cheaper Model Y could influence sector sentiment. Overall, tech leadership continues to support the S&P 500’s momentum despite mixed breadth and macro headwinds.
Key Support and Resistance Levels
Resistance Level 1: 6768
Resistance Level 2: 6800
Resistance Level 3: 6820
Support Level 1: 6696
Support Level 2: 6670
Support Level 3: 6640
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SPX : How to play this DPrice has now reached our target as anticipated. The question is, when do we SELL?
Anyway, for those who follow the D, I am sure it has saved you guys a lot of trouble. At least you know where/when to start SELLING. Many others who started selling EARLy had all lost their money.
As we can see, there are 3 D's. Price can still move UP to 6,800. Bear that in mind. Or has already reached the max at 6,291!!!
Price is at where they are, there are 2 choices:
a) SELL now and SL @ 6,300
b) SELL when price touched the lower D @ 6,140 with SL @ 6,291
Whichever way, the R/R is still FANTASTIC.
It is true that MARKET MAKER might still take advantage and try to screw short sellers. But even they would find it hard at the D. For even they need to respect it a bit.
If you know your D, you trade safer.
Good luck.
SP500 7400!!!We are at a time when stocks and risk assets are on the rise, we have a target not far from the SP 500 at around 7400
This is in an important resistance zone where it can have a pullback to break through or make a single leg in search of Bullran's macro target.
If it does a Pullback retest, we have a good zone of interest below to enter. This week we will have Payroll and it can dictate the pace of some assets. Let's keep an eye on these scenarios.
S&P 500: TACO Trump or Something More Serious?After a summer of plain sailing for the S&P 500, Friday’s sell-off was the first market wobble we’ve witnessed in some time. Let’s take a look at what this means moving forward…
Tariff Turbulence Returns
Donald Trump’s latest tariff threats against China sent shockwaves through markets on Friday, triggering the S&P 500’s biggest one-day drop since April. His comments, accusing Beijing of becoming “very hostile” and vowing “massive” tariffs, reignited fears of a full-blown trade war. Investors rushed into safe havens, pushing Treasury yields lower and sending gold back toward record highs. The sell-off saw more than four in five stocks in the index finish in the red, bringing an abrupt pause to the market’s recent record-breaking run.
But as Wall Street traders know, Trump’s tariff threats don’t always end the way they start. The “Trump Always Chickens Out” or TACO trade has become a familiar playbook for traders who buy the dip after a tariff announcement, then sell the rebound when the president softens his tone. Sure enough, over the weekend Trump hinted at reconciliation, praising President Xi and calling for cooperation. That shift helped US futures rebound early Monday, as investors once again bet that the sell-off might be more bark than bite. The question now is whether this episode follows the usual TACO script or signals something deeper brewing beneath the surface.
Bearish Engulfing Shock Sets the Parameters
Friday’s daily candle tells the story best. The huge bearish engulfing candle didn’t just erase the prior week’s gains, it wrapped around several days of price action and signalled a sharp shift in sentiment. Its sheer size is significant because range expansion after a calm period often marks a turning point in market psychology. The candle’s lower wick, finding support near the 50-day moving average, shows that buyers did emerge at key trend support, but how price behaves within this range will now define the path forward.
US500 Daily Candle Chart
Past performance is not a reliable indicator of future results
The hourly chart shows how that panic played out and how quickly traders have tried to repair the damage. The market found support before gapping higher at Monday’s open, showing a tentative attempt to stabilise. This kind of response often reveals whether a sell-off was a genuine trend reversal or a momentary flush of emotion. If price can keep grinding higher from here and close back above the midpoint of Friday’s engulfing candle, it would confirm that the uptrend remains intact and that buyers still have control.
However, if the S&P 500 stalls or consolidates in the lower half of that candle’s range, it would be a clear warning that the market’s tone has changed. Sideways price action here would imply that traders are waiting for confirmation rather than chasing rebounds, and that shift in behaviour can often lead to a second leg lower. The size of Friday’s engulfing candle now marks a battleground between short-term buyers and cautious longer-term investors. Whether we see a swift recovery or a slow grind will reveal if this was just another TACO moment or the start of something more meaningful.
US500 Hourly Candle Chart
Past performance is not a reliable indicator of future results
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