S&P 500: Bulls Bounced. The Chart Remains Suspicious.The market reached the target zone, but several bearish signals are lining up underneath the surface.
SPX has now reached the midpoint of the target area we identified yesterday, and suddenly the chart looks ready to make a much more serious statement. But there is a catch. Three green sessions in a row are not exactly background decoration. The bulls have clearly managed to assemble something, and dismissing that simply because the larger structure remains fragile would be a mistake. So, is this the beginning of a genuine recovery, a corrective trap before another leg down, or just the market keeping both camps sufficiently confused? Let’s start with what is actually visible. CANDLES & TA
From the Rosoku Desk, the answer is not particularly comforting. Despite three consecutive green sessions, the advance has still failed to confirm a bottom even on the daily frame. That is a rather serious omission. A market can smile for three days, but if the candles refuse to sign the paperwork, we probably should not declare the patient discharged. The futures are adding their own warnings. ES formed a clean Falling Three Methods setup, which points to a meaningful bullish failure. NQ and RTY have produced similar structures. YM, meanwhile, may have simply enjoyed itself a little too much, closing above its Bollinger Band for two consecutive sessions. The last time that happened, the celebration did not age particularly well. For tomorrow, the candle odds remain neutral to bearish, while the broader market picture stays bearish with elevated risk of a material decline over the next 1–2 weeks. ELLIOTT WAVE And this is where the story becomes much more interesting. The rebound has now reached the middle of our short-term target area, but it arrived there in a clearly corrective fashion. That matters. You're currently a free subscriber to Investing Angles’ Substack. For the full experience, upgrade your subscription.
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