From 'pullbacks' to a 'correction' (S&P 500)Setup
Still Bullish. Be patient for entry near end of the corrective move lower
Evidence..
-Trend is up, no top pattern
-No longer 'dips' to 50 DMA, now into a 'correction' with possible move towards 100 DMA
-Large bearish engulfing weekly candle
-The 4 month old trendline has broken.
-RSI has dropped under support - but not yet characteristic of bearish trend by going oversold
-Price has landed at a demand zone under 6500 (could rebound from here)
Signal
Looking to go long on another test of the demand zone OR
at next supports found at matching lows of 6350 then 6200
Trade ideas
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.
S&P 500 May Show Signs of FatigueS&P 500 has rallied steadily since April, but some traders may see signs of fatigue.
The first pattern on today’s chart is the large bearish candle last Friday, October 10, as trade wars resurfaced. Prices have remained trapped inside the range since. Does the sideways trend mark an end to the six-month uptrend?
Second is the high on September 22, higher high on October 9 and lower high on October 15. That may be viewed as a potential rounded top. A pair of bearish outside bars could also be viewed as reversal signals.
Third is the October 3 weekly close of 6,715. SPX peaked near the same level on Wednesday and Thursday, which may suggest resistance has been established at a lower level.
Fourth, you have the September 26 weekly close of 6,644. The index plunged beneath that price last Friday and tried unsuccessfully to rebound above it in the first half of this week. That may reflect a lack of new support.
Next, SPX is potentially breaking a rising trendline that began in late May.
Finally, MACD has recently turned negative and prices may be stalling at the 8-day exponential moving average.
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SPX500 Slips Below Pivot as Sellers Regain ControlSPX500 – Overview | Bearish Bias Below 6,609
The index reversed lower from resistance around 6,672 and has now stabilized below the pivot line at 6,609, signaling a continuation of bearish momentum.
As long as price trades below 6,609, the trend remains bearish, targeting 6,577 → 6,550, with further downside potential toward 6,507.
A 1H close above 6,609 would negate the bearish setup and shift momentum bullish toward 6,635 → 6,672 → 6,700.
Pivot: 6,609
Support: 6,577 – 6,550 – 6,507
Resistance: 6,635 – 6,672 – 6,700
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
S&P 500 The Bull Run Is Over. Watch the Yellow Level.The S&P 500 rally looks exhausted.
Over the past week, momentum has clearly faded, lower highs, weaker daily closes, and stronger selling pressure on each bounce.
Technically, the market shows early signs of a shift from bullish to corrective or bearish.
The Yellow Level acts as a divider between a mildly bullish market and the start of a medium-term bearish phase.
Above the Yellow Level: price may hold short-term strength or consolidation.
Below the Yellow Level: structure breaks down and downside potential expands.
A daily close below the Yellow Level would confirm the beginning of a broader bearish move.
In my view i suggest all the Trader/Investor which they are reading this to stay AT LEAST 80/90% IN CASH. something is about to happen... stay safe!
SPXShift prediction to the right a bit. I think almost everyone in these markets are waiting to sell.... I'm thinking if SPX closes below $6650 today, that will give the signal the wolves are looking for.
Still anticipating brief freefall on crypto ~1 week and brief correction on stocks ~1 month.
Short timeframe, but huge drop. Good luck.
Hellena | SPX500 (4H): SHORT to support area of 6646 .Colleagues, in the last forecast I was counting on price reaching the 6550 area, but that plan turned out to be a long term plan. I see the sense in making some shorter term targets.
The closest target I see is the 6646 support area, where wave “4” ends. This is a corrective movement, so it is necessary to realize that the price may continue to fall after reaching the target.
Fundamental context
U.S. inflation remains elevated — CPI rose to about 2.9 % YoY, with core inflation around 3.1 %. At the same time, the labor market continues to cool, and corporate earnings show mixed results. Combined with the Fed’s cautious stance and ongoing fiscal uncertainty, this creates pressure on the stock market.
Manage your capital correctly and competently! Only enter trades based on reliable patterns!
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.
SPX500 NEW HIGHSAccording to Gann: The high came at 6766--a cardinal level. Thereafter, SPX sold off and found support at 6602--another cardinal level. This shows you that the SPX is vibrating to the Static Sq9--very nice! That is what we need here. It means that once we start the correction all the levels you see listed here will become important. It doesn't mean that every level will offer support, but it does mean you need to pay close attention to each one as we go down. You can trade off them. Oddly enough, markets often become easier to trade the more volatility you have.
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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SPX500 Weakens as Markets Focus on Fed Rate-Cut HintsSPX500 – Overview | Bearish Pressure Below 6,699
Markets are focusing back on the Federal Reserve after Chair Jerome Powell hinted at the possibility of further rate cuts, calming investor sentiment despite lingering U.S.–China trade tensions.
For now, optimism around policy easing is offset by uncertainty in risk assets.
🕯 Technical Outlook
The price has reached resistance at 6,699 and is now stabilized below it, suggesting potential for further downside.
As long as price trades below 6,699, momentum remains bearish, targeting 6,670 → 6,634.
A 1H close above 6,700 would shift momentum bullish, opening the path toward 6,754.
Pivot: 6,699
Support: 6,670 – 6,635 – 6,609
Resistance: 6,717 – 6,754 – 6,791
$SPX Sell is not over yetHuge down move on Friday on Trump's tweet. And a gap up yesterday and market was sideways. So we are going up from here? It was a super bearish candle on Friday and technical points to further downside.
Indeed, my call at 840pm EST timestamped was followed by a 80 pts sell down. I could be wrong but I see 6000 or so; confluence of support, and even down to 5800 (50 Fib) before a huge rally towards end of year.
SPX500 NEW HIGHSThis picture includes the 50 day moving average. In addition to Static Sq9 support at 6602, keep an eye on the 50dma at 6549. A close below the 50dma will get the attention of a lot of traders. Once the SPX closes below the 50dma, look for a waterfall decline as traders and investors start to panic.
Bulls fight back but bearish signals lingerRecent mixed price and momentum signals on the S&P 500 suggest traders should keep an open mind on whether to play the index from the long or short side in the near term.
For the bulls, the strong bounce from a zone comprising the 50-day moving average and May 23 uptrend over the past two sessions suggests the buy-the-dip trade remains alive despite Friday’s sharp pullback, pointing to the potential for an eventual retest of the record high at 6766.
However, bearish divergence with RSI (14) raises questions about the sustainability of the move, especially with MACD having already crossed the signal line from above before proceeding to trend lower. Bullish momentum is weakening, not building, likely keeping bears interested for the moment.
For those looking to play the index from the long side, there are few setups worth considering. If we were to see a break above 6700 resistance, longs could be established above the level with a stop below, targeting the record high of 6766 initially. Alternatively, another pullback and bounce from the 50DMA/May uptrend support zone would provide a decent entry level, allowing for longs to be set with a stop below for risk management purposes. Potential targets include Tuesday’s high, 6700 or 6766.
For the bears, a failure to clear 6700 resistance would create a short setup, allowing for trades to be established beneath the level with a stop above for protection. The 50DMA/May uptrend support zone screens as a logical initial target, with 6500 and 6360 other options after that.
Good luck!
DS
S&P 500 Watching 6,700 Support as Seasonal Tailwinds Strengthen.Hey Traders,
In today’s session, we’re keeping a close eye on US500 for a potential buying opportunity around the 6,700 zone. The S&P 500 remains firmly in an uptrend, with price currently in a healthy correction phase approaching a key support and trend confluence near 6,700.
Beyond the technical setup, seasonality adds a bullish layer — over the past 15 years, the S&P 500 has advanced 14 times in October to early November, averaging significant gain during this window.
If history rhymes, the current pullback could offer a compelling buy-the-dip opportunity into one of the market’s strongest seasonal periods.
Trade safe,
Joe.
SPX500 Drops as Regional Banking Worries Shake Wall StreetSPX500 – Overview | Bearish Pressure Below 6,578
U.S. stock futures fell nearly 2% as regional banking concerns resurfaced following disappointing earnings and early signs of credit stress across smaller U.S. lenders.
The selloff reignited fears about credit quality and dragged global markets lower, while traders now shift focus to upcoming earnings from regional banks and American Express for further clues on financial stability.
🕯 Technical Outlook
SPX500 maintains bearish momentum while trading below 6,578, targeting 6,550 → 6,527 → 6,506.
A 1H close above 6,578 would shift sentiment bullish, opening the path toward 6,609 → 6,635 → 6,670.
Pivot: 6,578
Support: 6,550 – 6,527 – 6,506
Resistance: 6,609 – 6,635 – 6,670
SPX is weakening at a very dangerous price level🔱 SPX is at a very dangerous price level ⚠️
...right at the Upper Median Line Parallel.
💰 If this market turns, the Centerline becomes the next target.
The 0-5 Count is also a good indication when prices start to turn at these extreme levels.
⚠️ Stay sharp — momentum is fading.
I wish you all a relaxing weekend.
SPX 500 extends recovery as traders watch US-China situationAfter breaking above 6677 yesterday, the S&P 500 created a higher high on the intraday charts, and so today's gains were a continuation of that move. But the index has now arrived into the next potential resistance area between 6720-6740, which was a key short-term support zone before the breakdown we saw on Friday. Could we see some volatility around this zone now?
Risk appetite returned overnight, with US index futures climbing to new weekly highs, even though European markets showed a more mixed performance. In currencies, the US dollar index retreated against most major peers, surrendering part of its recent gains. Market sentiment this week reflects a cautious blend of optimism and restraint. Expectations for Federal Reserve rate cuts remain the key driver, underpinning risk appetite even as gold extends its record-breaking rally beyond $4,200.
Investors appear largely unfazed by renewed US–China trade tensions, brushing off President Trump’s latest warning on cooking oil imports. Meanwhile, solid US bank earnings have bolstered confidence in corporate resilience, keeping equities supported despite the ongoing US government shutdown. Adding to the upbeat tone this morning, French political tensions eased after Prime Minister Sébastien Lecornu announced a delay to his contentious pension reform plan.
But with the US-China tensions back at the forefront, could investors start taking profits on their long equity trades to cause a bit of selling pressure now?
by Fawad Razaqzada, market analyst with FOREX.com
Breakdown in SPX is a possibility Observation on SPX
1) Since 25TH April the SPX was bouncing on its 20 Ema . In fact if you bought every time SPX touched the 20 EMA you would have made money .
2) The 20 Ema acted as a support 6 times .
3) But notice the last three bounces were weaker and weaker .
4) 7 time the 20 Ema broke with increasing volume .
Conclusion the probability of a break down is very high almost 75%