SPX Posts Strong Week: Megaphone Pattern Signals Higher Targets

Market Summary The S&P 500 (SPX) delivered on last week's green week prediction, driven by a powerful short squeeze from the 5830 megaphone pattern support level. The index showed remarkable strength, reaching the 6004 target before a tactical retreat to the 5960s, followed by a push higher to 6033+ on a bull flag breakout.

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The technical structure remains compelling, with the two-month megaphone pattern suggesting potential upside to 6270. The market's ability to hold key support levels and form constructive patterns (like the recent bull flag) indicates sustained buying pressure, though questions about rally sustainability remain paramount.

Technical Framework

• Support: 5966, 5951

• Resistance: 6016, 6033

• Ultimate Target: 6270

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Pattern Analysis

1. Major Structures

   • Two-month megaphone pattern

   • Bull flag formation

   • Support-resistance levels

2. Trading Triggers

   • 5974 recovery level

   • Flag pattern breakout

   • Squeeze continuation

Looking Ahead

• Monitor bull flag structure

• Watch 5974 support

• Track megaphone progression

Stay tuned for updates on rally sustainability and key technical developments.