SPX at a Tipping Point Rising Wedge Meets 200 EMAThe SPX is currently trading within a rising wedge a bearish pattern that typically signals exhaustion of upward momentum. Price has now stalled right at the 200 EMA, a key dynamic resistance level, and today's close came just beneath it.
If this rising wedge breaks to the downside especially with a confirmed rejection from the 200 EMA we could see accelerated selling. The next key support level to watch is $5,438.43. A breakdown from here would likely test that zone quickly.
This setup follows our earlier call from March 27, where we highlighted the $4,790 area as a bottom nearly nailed to the point. From that low, SPX rallied, but now the structure is showing signs of strain.
We’re at a decision point: hold the 200 EMA and potentially break higher or confirm the wedge breakdown and begin a new leg down.
