S&P500
Following the failed breakout at the start of last week, the index opened with a gap down. If this gap remains open, this pattern could set the stage for a stronger correction. The index also closed below 7,500, so the outlook remains bearish for now. Later, a break below the lower rising trendline—with a close below 7,188—could reinforce the downtrend. Stronger support is expected around the 6,875 level. If the gap were to close and the high close were to hold, the picture could change.
Resistance levels: 7,500; 7,656; 7,813.
Support levels: 6,875; 6,563; 6,250; 5,937; 5,781; 5,625.
