Momentum Lost? The S&P Faces Its Tipping Point(Educational content only – not investment advice)
Momentum isn’t lost in one candle — it fades slowly, then suddenly. Watch the S&P closely.
Yesterday’s aggressive sell-off in the S&P has traders asking: is the rally running out of steam? Let’s break down the chart step by step:
🔎 Key Levels to Watch
- Resistance: October high at 6,920 – the market failed to push through.
- First Support: Base of the daily Ichimoku cloud at 6,640.
- Critical Level: November low at 6,522 – a close below here would be seen as a strong negative signal.
- Weekly Baseline: 6,432 – next downside target if 6,522 breaks.
- Major Low: February high at 6,147 – deeper support zone.
📉 Why It Matters
- The S&P is struggling at the top of a long-term up channel dating back to 2009.
- Resistance around 7,7400 was expected to provoke failure – and price action is stalling just below.
- Momentum looks weak, making a close above 6,920 a tall order for bulls.
🧠 Educational Takeaway
This setup highlights how multi-timeframe analysis (daily cloud + weekly baseline + long-term channel) can reveal pressure points in a market.
- Support zones show where buyers may step in.
- Resistance zones highlight where rallies often fail.
- Watching key closes (above 6,920 or below 6,522) helps traders gauge momentum shifts.
