📉 Did the S&P 500 Just Exhaust its Downtrend, or is This Just a Bounce?
The S&P 500’s latest decline pushed beyond its short-term cycle channel, triggering a sharp reactionary rally on Friday.
🔎 Key Observations from the Chart:
- The market overshot the lower boundary of a key cycle wave extension—often a sign of exhaustion.
- Our Cycle Wave Composite (CWC) flagged this inflection point in advance, with a short-term buy signal firing midweek.
- Momentum indicators suggest mean reversion is in play, but follow-through will determine if this is just a pause in the trend.
📊 What Comes Next?
- A break above resistance (5.7K–5.8K) could shift market structure toward a larger recovery.
- Failure at resistance sets up another leg lower, with key downside targets in play.
🧠 Institutional traders, hedge funds, and portfolio managers—this is where cycle analysis provides an edge.
➡️ Full breakdown + actionable trade levels in this week’s Liquidity Trader – Technical Trader, institutional report. Next update Monday, pre-market.
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