📉 S&P 500: Big Dip Incoming - Wedge Confirmed and Correction to 5,600 Points
The S&P 500 just confirmed today (02/05/2026) a concerning technical formation that has historically preceded significant corrections: a falling wedge that could lead the index to a substantial drop in the coming weeks.
📊 The Technical Pattern
After reaching highs near 7,000 points at the end of January, the index has been forming a wedge that was confirmed with today's breakdown, with price falling to the 6,837 region. This pattern is not new - and that's exactly what makes the situation more concerning.
📉 Historical Precedents
This same technical formation appeared at critical moments:
2022: The major correction was preceded by a similar wedge, resulting in significant drops
Early 2025: Again the pattern repeated, signaling volatility and correction
The repetition of this technical setup is not coincidence - it's the market showing buyer exhaustion at tops.
🎯 Projection and Target
Based on the wedge structure and Fibonacci projections, the primary target is at 5,600 points, which represents a correction of approximately 18% from current levels. This move would be consistent with historical corrections after similar formations and should not stop there.
Disclaimer: This is a technical analysis based on historical patterns. Always trade with proper risk management.
The S&P 500 just confirmed today (02/05/2026) a concerning technical formation that has historically preceded significant corrections: a falling wedge that could lead the index to a substantial drop in the coming weeks.
📊 The Technical Pattern
After reaching highs near 7,000 points at the end of January, the index has been forming a wedge that was confirmed with today's breakdown, with price falling to the 6,837 region. This pattern is not new - and that's exactly what makes the situation more concerning.
📉 Historical Precedents
This same technical formation appeared at critical moments:
2022: The major correction was preceded by a similar wedge, resulting in significant drops
Early 2025: Again the pattern repeated, signaling volatility and correction
The repetition of this technical setup is not coincidence - it's the market showing buyer exhaustion at tops.
🎯 Projection and Target
Based on the wedge structure and Fibonacci projections, the primary target is at 5,600 points, which represents a correction of approximately 18% from current levels. This move would be consistent with historical corrections after similar formations and should not stop there.
Disclaimer: This is a technical analysis based on historical patterns. Always trade with proper risk management.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.