S&P 500 breaks key support, signals deepen downtrend
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- S&P 500 closed below its –4σ modified Bollinger band, triggering a McMillan volatility band buy signal that remains active until the index reaches either the +4σ target or closes further below the –4σ stop level
- S&P 500 has broken multiple support levels and remains under technical downtrend pressure, with resistance concentrated between 6,615 and 6,670, including the 20-day and 200-day moving averages
- S&P 500 failed to close above 6,615 — the Chandelier stop for short sales — indicating persistent selling pressure and lack of sustained bullish momentum
- Lawrence G. McMillan analyzed the index's technical structure, concluding that the charts show widening cracks in market strength, even as short-term volatility-based signals emerge
Why it matters: The breakdown below critical volatility thresholds means even short-term bounce signals are playing out in a structurally weaker market, raising risk for traders relying on mean reversion. With key moving averages acting as resistance, the path of least resistance remains downward, altering risk-reward dynamics for near-term positioning.
