SPX ANALYSIS: IS A SIGNIFICANT CORRECTION APPROACHING?
The S&P 500 (SPX) continues to move within a rising wedge pattern, a formation that historically tends to appear near market exhaustion zones.
What the chart shows:
The price continues to mark higher highs but with less momentum.
An increasingly narrow structure is forming, typical before a breakout.
The RSI shows bearish divergence making lower highs while the price rises.
This indicates a progressive loss of buying strength.
Key signal: When a rising wedge breaks to the downside along with divergence in the RSI, it often leads to a corrective phase.
After a strong rally from the lows, the market seems to be entering a stage of distribution and fatigue.
There is no panic, but there are signs of cooling.
Possible scenario: Short-term consolidation.
Increased volatility.
Risk of correction if key support is lost.
This could also impact risk assets like cryptocurrencies.
The market is not in collapse yet, but technical signals suggest caution.
It is not a time for FOMO but for risk management.
Attentive traders are already observing these signals.
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