S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- SPX trades below 5,494, reinforcing bearish sentiment.

- RSI indicates oversold conditions but no rebound yet.

- Bearish setup targets 5,291 with resistance near 5,640.

The S&P 500 is extending its corrective decline, slipping 0.86% to trade near 5,396.51 following a rejection below 5,640 resistance and a firm breakdown beneath the 5,494 pivot.

The price action has carved out a clear descending channel, with the index now approaching key support at 5,341.70. A breach below this level would expose the next bearish target at 5,291, reinforcing a negative technical bias in the short term.

Adding to the cautious tone is the RSI, currently hovering at 29.56—deep in oversold territory, but not yet signaling a reversal. The index continues to trade well below the 50-period SMA at 5,675, a level that also aligns with the upper bound of the descending trendline. Any bounce from current levels is likely to face strong resistance at 5,494 and then 5,640.

The broader structure suggests the market remains vulnerable to further downside, particularly if macroeconomic risks persist or if investors react negatively to upcoming job or inflation data. A bearish setup remains valid as long as SPX stays below 5,492, with a downside target at 5,291 and a stop loss at 5,641.

S&P 500 - Trade Ideas

Entry Price – Sell Below 5492

Take Profit – 5291

Stop Loss – 5641

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$2010/ -$1490

Profit & Loss Per Mini Lot = +$201/ -$149