S&P 500 ($SPX) Maintains Uptrend Despite Recent Decline

by MarketNewsData

Market Context

The S&P 500 declined 1.66% to 6,737.49, pulling back sharply into a major support cluster. Despite the drop, the broader uptrend remains intact as long as 6,700 holds.

📈 Trend & Pattern Structure

  • SPX continues to trade inside a rising channel that began in April.
  • Price has consistently respected both the ascending trendline and the 50-day moving average.
  • Today’s decline stopped exactly at that support convergence, preserving the uptrend.

Primary Pattern:
➡ Ascending Channel / Trendline Support

Status:
➡ Uptrend intact unless support breaks

📉 Critical Downside Level

➡ 6,700 — Must-Hold Support

This level is critical because it combines:

  • The ascending trendline
  • The 50-day MA (~6,699)
  • A multi-week support shelf

Breakdown Triggers

  • Close < 6,700 → first warning
  • Two closes < 6,650 → confirmed trend break
  • Downside targets: 6,500 → 6,300 → 6,150 (200-day MA)

📈 Upside Levels

If 6,700 holds, the uptrend is expected to continue.

  • First resistance: 6,800 – 6,830
  • Breakout target: 6,950
  • Channel extension: 7,150 – 7,200

📊 Indicators

  • MACD: Momentum weakening; watching for a bear cross. Not confirmed yet.
  • Volume: Elevated but not capitulatory — consistent with a normal pullback in trend.
  • Relative Strength: Still making higher lows, matching a trending market.

📝 Summary

  • The entire bullish structure hinges on 6,700.
  • A bounce here would maintain the rising channel with upside toward 6,950–7,200.
  • A break below 6,700, especially confirmed under 6,650, would signal a trend reversal with room to retrace toward 6,500 and potentially 6,300.

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