The S&P 500 Indicator has detected two consecutive Accumulation Days, following a Bullish Impulse observed on Monday. While the Indicator value improved to -5.6, it technically remains in bearish (red) territory.
Monday’s rally, marked by low volume, an elevated True Range, and sudden upward momentum, bears the hallmarks of a Bear Market Rally—especially in the broader context of a weekly sell signal and a deteriorating macroeconomic backdrop.
However, it would be unwise to dismiss the current Buy-the-Dip mentality and risk-on sentiment, as ample liquidity continues to flow into equities. Despite closing below the critical 20-day Moving Average yesterday, market behavior still pointed to underlying Accumulation.
From a technical standpoint, a retest of the 6500 all-time high (ATH) appears likely before any sustained reversal. Historically, the longer a topping formation takes to develop, the more meaningful and impactful the eventual reversal tends to be. For the bearish scenario, if below 6200, a cluster of indicators points towards a target of 6000 for the S&P.