In today’s technical analysis, we have to focus on the recent sell-off on indices, with the S&P 500 leading the move. Yesterday’s American session brought a huge drop, leaving the chart in a clearly negative condition.
The first bearish signs came as the price broke below the red horizontal support and the blue uptrend line. From there, the index slid toward the pink horizontal support, a key area defined by the highs from two weeks ago. Initially, we saw a hammer candle forming on this support, hinting at temporary defense by buyers. However, that protection quickly failed, and the price dropped even further.
Now, the S&P 500 is trading below the pink support, which cements the bearish outlook. The next target is the black horizontal support, and the chances of reaching it are quite high. This negative scenario will remain dominant unless the price climbs back above the red resistance, which would cancel the sell signal—but given the momentum, the odds of such a recovery appear limited for now.