Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Stocks

S&P 500 Dives After Failed Test of Price Resistance; Bears Are in Control

by admin April 2, 2025
April 2, 2025
S&P 500 Dives After Failed Test of Price Resistance;  Bears Are in Control

The key resistance level I’ve been watching on the S&P 500 hasn’t wavered. It’s 5782. The bulls had a real chance this past week to clear this important hurdle and they failed. Badly. If this was a heavyweight fight, the ref would have called it after the first round. It simply wasn’t close. Resistance failed, rotation turned bearish, volatility again expanded, and the bears are celebrating another short-term victory.

Check out this S&P 500 chart:

I’ve written about this to EarningsBeats.com members. I posted this exact chart in my StockCharts.com article a few days ago. I’ve discussed it on my YouTube shows. 5782 is THE key short-term price resistance and you can see above that the S&P 500 literally did an “about face” as soon as it touched this resistance. Sellers were lined up. Now that we’ve failed at 5782, it only makes this resistance level that much more important on any future rallies.

The serious technical damage occurred over the past 3 days as consumer discretionary stocks have been absolutely TROUNCED, while consumer staples hangs near its recent highs. If you recall, it was this HUGE disparity in consumer stocks on February 21st that triggered the massive selling episode. Now here we are again with consumer staples stocks (XLP) outperforming discretionary (XLY) by a mile. Check out this chart:

Doesn’t the action in consumer stocks the past 3 days exactly mirror the action we saw in the 2nd half of February and into the first week of March? Folks, this isn’t good.

This is just the tip of the iceberg.

Bear Market Ahead?

The S&P 500, from its recent all-time high to its subsequent low, fell 10.4%, which marks correction territory. The rally we saw off the March 13th low was likely due to oversold conditions, along with March options expiration. On Tuesday, March 18th, we discussed with our EB.com members that odds favored a short-term rally, based on max pain and we laid out key resistance from 5670 to 5782, with the 20-day EMA falling in the middle of this price range. Once we failed at 5782, it was very important to gauge the nature of any new selloff. That’s what I’ve been evaluating this week and it’s not pretty. As you can see in the chart above, money has once again started rotating into the XLP and out of the XLY. This is one of the most important intermarket relationships and it’s screaming BEARISH ACTION AHEAD!

It’s only one signal, however. I announced a few days ago that we’d be hosting a FREE webinar on Saturday morning, March 29th, at 10:00am ET. I plan to discuss several signals that are pointing to exactly what we saw on Friday – more selling. To get a better handle on current market conditions and where we’re heading, I’d encourage you to join me Saturday morning by REGISTERING HERE. If you can’t make the live webinar, we’ll still send out the recorded video to all who register, so ACT NOW!

And here’s a little secret. Shhhhhhh! Market makers are playing some serious games manipulating some of the biggest stocks. I’ll talk a bit about how we can take advantage of that Saturday morning. Hope to see you there!

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
Republicans seek to block the reappointment of UN official accused of antisemitism
next post
Trump’s massive 46% Vietnam tariffs could hit Nike, American Eagle and Wayfair

Related Posts

These Old-School Stocks Have Joined The AI Rally!

November 23, 2024

TAG, You’re It! Rotation Away From Semiconductors Benefiting...

June 28, 2024

The Bullish Case for Small Caps vs. Large...

January 15, 2025

Where the Market Goes Next: Key Resistance Levels...

May 11, 2025

Unlocking the Secrets to Profitable Semiconductor Investments

February 22, 2025

AI Stocks and Their Impact on the Stock...

January 29, 2025

Equities Are Not the Place to be as...

April 21, 2025

Week Ahead: NIFTY Stares At Crucial Support; RRG...

February 10, 2025

This Is How I Crush The Benchmark S&P...

February 17, 2025

Week Ahead: Despite Pullback, Breadth Remains A Concern;...

June 9, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • The Best Five Sectors, #21

      June 3, 2025
    • What’s Next for Dollar Tree, CrowdStrike, and Broadcom? Watch These Setups

      June 3, 2025
    • Hedge Market Volatility with These Dividend Aristocrats & Sector Leaders

      June 3, 2025
    • ‘Squad’ members condemn antisemitic attack in Boulder after years of controversy

      June 3, 2025
    • Schumer, Democrats plot coordinated resistance to Trump’s ‘one ugly bill’

      June 3, 2025

    Categories

    • Business (958)
    • Investing (2,300)
    • Politics (2,853)
    • Stocks (1,049)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved