Market Summary

After four consecutive red weeks reminiscent of the early stages of the 2022 bear market, the S&P 500 managed to secure a green week, breaking the downward momentum. The recovery began with a critical Failed Breakdown pattern last Thursday, launching a relief rally that tested the significant 5755-62 megaphone resistance multiple times this week.

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Technical Levels

  • Range Boundary: 5686 support to 5750-55 resistance

  • Weekly Performance: First green week in 5 weeks

  • Key Rejection Zones: 5755-62 megaphone pattern

  • OPEX Day: Maintained range after typical choppiness

Pattern Analysis

  1. Key Sequences

    • 4 consecutive red weeks

    • Failed Breakdown recovery

    • Multiple tests of megaphone resistance

  2. Control Zones

    • Bulls maintaining 5686 support

    • Resistance at 5750-55

    • Potential continuation levels: 5610, 5636, 5710

Looking Ahead

  • Sustainability of relief rally

  • Monitor megaphone resistance

  • Watch for potential follow-through or rejection

  • Assess likelihood of deeper market lows

Follow our analysis for continued market insights and technical developments.

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