SPX Breaks 8-Day Streak: First Red Day of 2025 Rally

350-Point Run Takes Breather as Bulls Eye Next Support Level

Author

Market Maverick
January 26, 2025

Market Summary 

The S&P 500's remarkable eight-day winning streak came to an end today after a 350-point rally from the January 13th megaphone pattern support at 5810. The index reached 6161 before pulling back, marking its first red session of 2025 after consistently hitting projected technical targets throughout the run.

The structural bullishness of ES remains evident, characterized by short, violent downside moves followed by powerful short squeezes. This pattern has been particularly visible since mid-January, with Failed Breakdowns consistently providing long entry opportunities and the megaphone pattern suggesting further upside toward 6200+ resistance.

Technical Framework

  • Support: 6135

  • Recent High: 6161

  • Target Sequence:

    • 6161 (reached)

    • 6172

    • 6185+

Rally Statistics

  1. Current Move

    • 8 consecutive up days

    • ~350 point gain

    • Started at 5810 support

  2. Key Levels

    • Failed Breakdown at 6115

    • Megaphone resistance: 6200+

    • New ATH territory

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Looking Ahead

  • Monitor dip-buying behavior

  • Watch 6135 support

  • Track megaphone pattern progression

Follow our analysis for potential buying opportunities and key support levels.