SPX Snaps Streak: Can Bulls Break the Four-Week Red Run?

Market Summary 

The S&P 500 managed a significant green session today, offering a glimmer of hope after four consecutive red weeks—the longest such streak since April 2022's bear market. The rally followed a predictable Failed Breakdown pattern, where Thursday's trap below Tuesday's 5533 low created a short-covering rally that hit multiple technical targets at 5584 and 5599.

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This positive session marks a potential turning point after an extraordinary period of weakness, during which the index has been unable to string together two consecutive green days since February 19th. Monday's breach of the four-month megaphone pattern support had accelerated selling pressure, but today's recovery from the 5512 low demonstrates that bear traps continue to provide effective rally triggers even in challenging market environments.

Technical Framework

• Key Levels Hit:

  • 5558 (exact test)

  • 5584 (target reached)

  • 5599 (target reached)

• Next Targets:

  • 5658-60

  • 5703-10

Pattern Analysis

1. Setup Structure

   • Failed Breakdown below 5533

   • Flush to 5512

   • Recovery trigger

2. Historical Context

   • Four consecutive red weeks

   • No back-to-back green days since Feb 19

   • Megaphone pattern breach

Looking Ahead

• Monitor two consecutive green day potential

• Watch for megaphone pattern retest

• Track level-by-level progression

Follow our analysis for green week potential and key support/resistance developments.