Market Resilience: SPX Breaks 4-Week Losing Streak Amid Technical Crossroads

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

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