Saad Ullah
⬤ The S&P 500 (SPX) has slipped below its 8-day, 21-day, and 50-day moving averages — a combination that typically signals short-term trend deterioration. The index is now sitting under the 6880 area, which has quickly flipped from support to a near-term reference level defining the current range.
⬤ Staying under 6880 raises the odds of continued downside pressure. Resistance is stacked near recent highs around the 6900 region, and price keeps struggling to reclaim that ground. We've seen this dynamic before — most recently when SPX pulled back from 7000 resistance, where failing to hold higher levels opened the door to a meaningful leg lower.
Remaining below 6880 increases the probability of lower prices.
⬤ The key level everyone's watching right now is the 6780–6790 zone. Hold above it and the market stays in consolidation mode. Lose it, and there's meaningful room to the downside. Similar setups have shown up before — when SPY fell below its 50-day moving average and during stretches where bearish breadth indicators weakened the S&P 500, the index struggled to find footing until buyers stepped in with conviction.
⬤ For now, SPX is caught between layered resistance above and critical support below. How price reacts around the 6780–6790 area will likely set the tone — either confirming a range-bound grind or kicking off a more directional move as momentum and sector participation develop.
Saad Ullah
