S&P 500 Update: Key Developments You Should Know

Hey everyone! I wanted to share some important insights regarding the S&P 500 Index that could impact your trading and investing strategies.

Since July 15, 2024, the daily chart has been forming a rising wedge pattern, a bearish setup in technical analysis. Fast forward to December 17, the pattern completed, and we saw the first signs of a break in structure.

Here’s why this matters:

When a rising wedge breaks down, previous support levels flip into resistance zones.
It’s common to see a retest of the resistance to confirm the zone, and a false breakout can lure retail traders into poor positions before the market reverses downward.
Fast forward to today, January 16, 2025— the market just closed below the 50-day moving average, signaling potential weakness.

As we move further into the year, it’s crucial to stay vigilant, manage your portfolio carefully, and keep an eye on key technical levels. Remember, staying informed and disciplined is the edge you need in these markets.

Hope this breakdown brings some clarity to what’s unfolding with the S&P 500. Catch you next time!