$SPX Faces a Short Term Bearish Setup as the Gap Fill Unfolds
$SPX was rejected around 7,714 today before sliding toward 7,684, keeping the short-term structure firmly on the defensive. The key question now is whether the current move develops into a broader gap fill toward 7,610. 👀
For the bearish gap-fill thesis to remain intact, 7,760 is the level that matters most. A recovery back above 7,760 would weaken or invalidate the setup. Until then, 7,714 and 7,684 remain the next downside levels to watch as the move potentially develops over several sessions.
⚠️ Tomorrow's FOMC minutes at 2:00 PM add another layer of event risk. Volatility could increase sharply around the release, so the short-term path may remain bearish or choppy rather than develop into a clean directional move.
📊 The bigger picture is different. The medium- and long-term structure remains bullish, with the overhead gap still serving as an important reference for the broader bullish thesis. The current weakness is therefore better viewed as a short-term correction unless key structural levels begin to fail.
Key levels:
🔴 7,760 → bullish invalidation level
⚠️ 7,714 → first downside reference
📉 7,684 → next support
🎯 7,610 → potential gap-fill objective
For now, the setup favors short-term weakness or choppy price action, while the longer-term bullish structure remains intact.
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