SPX Market Summary and Forecast

The expected rebound came right on cue and started fading the same day as expected:

Market breadth remains weak, although most overbought/oversold indicators are neutral.

Key levels to watch:

7575 - 7580:  immediate support and decision area; holding it would keep the pullback contained, while a clear break would increase the risk of a retreat toward about 7,500.

·        7,670: is the first important hurdle on a rebound and would be an early sign that buyers are regaining control.

·        7,695–7,725: Moving through this zone would strengthen the recovery case and align with the five-day upside projection.

Pivot level: 7635

B   Bottom line: SPX remains in a longer-term uptrend, but short-term momentum is weakening so the best stance is being cautious rather that aggressively bullish or bearish.

 

SPX Weekly Update

 SPX has turned bearish on the daily timeframe after breaking below 7,611 which now turns into resistance:

The weekly trend remains cautiously bullish while SPX is trading within the current weekly range:

The overall outlook is neutral. Market breadth oversold levels favor a modest three to five-day rebound, but conviction is limited by the small rebound target and moderate win rate.