SPX Snaps Its 6 Red Day Streak. Can The Bounce Hold?

SPX Snaps Its 6 Red Day Streak. Can The Bounce Hold?
March 3 Plan

The S&P 500 (SPX) ended its six-day losing streak on February 28, 2025, marking its first such stretch since April 2024. This downturn began on February 21, 2025, with a significant open-to-close red trend day—the only one during this period.

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The sell-off initiated when SPX breached a well-established support zone between 6116 and 6123. As previously noted, breaking such critical support levels often leads to accelerated declines. Over the past week, despite intermittent bounces—including a 100-point surge on February 24 and a 70-point rise on February 25—the index remained largely range-bound above 5938, with each rebound subsequently sold off.

On February 28, 2025, SPX managed to break this pattern. After an initial morning high of 5914, the index dipped to new lows but then executed a significant failed breakdown, rallying to close within the 5938-5942 target range.

With the losing streak halted, the pressing question is whether this bounce is sustainable. Analyzing the recent sequence of setups—including the failed breakdown and back-test short—provides insight into potential future movements.

Learn More:

• S&P 500 Ends Six-Day Slide Amid Market Volatility

• Technical Analysis: SPX Faces Resistance After Recent Bounce

• Market Sentiment Shifts as SPX Attempts Recovery

• Economic Indicators to Watch Amid SPX Volatility

• Strategies for Navigating Current Market Conditions

Disclaimer: This newsletter is for informational purposes only and should not be considered financial advice. Please consult a financial advisor before making investment decisions.