Current Market Overview

• The market is still holding up gains, with some bullish signals visible.
• Potential risk: Increasing supply at the top, which could disrupt upward momentum.
• Overall, the sign of strength is evident, with a pullback that has formed a bull flag.

Bearish Attacks and Supply Concerns

• Recent bearish activity shows a localized increase in supply (last Tuesday), though not yet a major threat.
• Both the volume and bearish spreads are relatively contained.
• A demand tail has emerged, indicating buying pressure even with increasing supply.
• Refer to the video below for a detailed analysis of the S&P 500 with Wyckoff method.

Video Length: 00:04:17

Key Support Levels to Watch

• The 5690 level is crucial. As long as this level holds, the market remains in a bullish stance.
• A healthy pullback or consolidation could occur, but this level is the most important support point for continued upward momentum.
• If the market consolidates without breaking this level, it could signal a breakout in the near future.

Potential Breakdown Scenario

• If the 5690 level is violated, expect downward acceleration similar to previous sell-off patterns.
• A breakdown could lead to a flush toward the 5550 level, which could provide new support.

Conclusion

The market is at a critical juncture. While bullish momentum is still intact, traders should keep an eye on key levels, especially 5690, and watch for potential breakdowns. As long as the market holds steady, there will be bullish trading opportunities, but be prepared for potential shifts if key levels are breached.

More By This Author:

Carvana Breakout: Could This Bull Flag Propel It To $240?
Bulls In Control - For Now. Is A Reversal On The Horizon?
This Little-Known ETF Strategy Could Be Your Ticket To Big Gains—Here's The Setup