Bearish Signals Intensify for S&P 500 Amid Weekly Decline
19 July 2024
The S&P 500 is enduring a tough week, particularly in its latter half, marked by a substantial decline. The index has broken through the orange uptrend line, signaling potential trouble. Currently, the decline is being halted by key horizontal support marked in blue, but its durability remains uncertain. Should this support fail, the next target lies at the yellow horizontal support.
On the weekly chart, the formation of a bearish engulfing candle suggests a long-term bearish outlook. If the price manages to recover above the orange uptrend line, it would be a positive sign, though the likelihood of this appears slim at the moment.
The break of the orange uptrend line is critical and points to a weakening momentum. The blue horizontal support is crucial, and its hold is vital for any short-term recovery. A breach would likely lead to further declines towards the yellow support. The bearish engulfing pattern on the weekly chart adds to the negative sentiment, indicating strong selling pressure.
The situation is precarious; a failure to hold the blue support could mean significant losses ahead. Traders are advised to watch these levels closely. A bounce back above the orange uptrend line could negate some bearish pressures, but current indicators suggest a lower probability of this scenario.