Market Summary The S&P 500 experienced significant volatility this week, starting with a 170-point "elevator down" decline before staging a powerful recovery through Failed Breakdown patterns. After testing the crucial 5997 level, the index rebounded strongly, reaching 6109 before encountering FOMC-driven chop around the key 6066-70 zone.
Today's FOMC session displayed characteristic trap behavior, with multiple flushes and recoveries around 6066-70, ultimately closing above this pivotal level. The market's ability to defend this zone through high-volatility price action suggests potential energy building for the next directional move.
Key Levels
Critical Support: 6066-70
Secondary Support: 6016, 6008
Recent High: 6109
Price Action
Week's Movement
Initial drop: -170 points
Recovery: Failed Breakdown at 5997
FOMC consolidation: 6066-70 zone
Technical Triggers
Multiple Failed Breakdowns
Gap fill to 6109
FOMC level defense
Looking Ahead
Monitor 6066-70 support
Watch for breakout direction
Track FOMC follow-through
Following price action for next directional move.