S&P 500 Bearish Reversal Setup: Short Entry Below Key ResistanceEntry Point: Around 5,678.79
Stop Loss: Around 5,833.61 (above recent resistance zone)
Target Point: Around 4,831.37 (indicating a bearish target)
2. Technical Patterns:
The price hit a resistance zone (highlighted in purple) and reversed—this is often a bearish signal.
The trendline break (marked with the orange dot and blue arrow down) suggests a potential trend reversal.
The moving averages (likely 50 EMA and 200 EMA) indicate the price is still above the support zone but weakening.
3. Risk/Reward Ratio:
Risk (Stop Loss – Entry): ~154.82 points
Reward (Entry – Target): ~847.42 points
Risk/Reward Ratio: Approximately 1:5.5, which is favorable for shorting.
4. Trade Sentiment:
Bearish bias based on the breakdown from the resistance zone and confirmation from chart patterns.
If the price fails to hold above 5,682.87, a short trade may be validated with the target at 4,831.37.
