- The S&P 500 extended its decline after a bearish re-test near 5,800 failed, confirming resistance and signaling deeper downside ahead.
- Consistent lower highs and failed support reclaim reinforce the downtrend, with technical patterns aligning with increased sell pressure.
- With resistance firmly at 5,800 and support zones near 5,100 and 4,900, the market remains under bearish control amid rising volume
The S&P 500 posted a sharp decline, shedding 118.29 points or 2.19% to close at 5,278.33. This drop follows a bearish re-test and failed support reclaim, marking a critical moment for traders watching price structure. The index opened at 5,335.75, reached an intraday high of 5,367.24, and dropped to a session low of 5,274.70. Since hitting highs above 6,100 in February, the S&P 500 has entered a clear downtrend, with lower highs and lower lows defining the recent structure. April trading activity has confirmed this breakdown, with increasing sell volume and persistent bearish pressure.
Failed Support Turns to Resistance
Besides the drop, technical patterns reinforce the bearish narrative. IncomeSharks, a popular trading account, highlighted a failed support zone near the 5,800 mark. This level, now acting as resistance, has been tested but not reclaimed. Red X markers on the chart show where bulls failed to regain momentum. Two red arrows point to consistent bearish reactions following these re-tests, signaling fading optimism.
Moreover, the current setup appears to follow a typical relief rally after a breakdown. IncomeSharks emphasized that this bounce wasn’t sustainable. Consequently, the rejection from previous support adds weight to the ongoing bearish trend. The market’s reaction reflects more than just headline-driven volatility—it mirrors predictable technical behavior.
Key Levels and Future Outlook
Additionally, the analysis presents a roadmap for what could follow. Blue arrows hint at further downside before any real recovery attempt. The index may find near-term support around 5,100. A blue checkmark suggests a stronger support zone near 4,900. If prices fall to that level, it could spark renewed bullish interest.
However, until the index reclaims the broken 5,800 level, the structure remains decisively bearish. Increased trading volume during the recent selloff adds to this outlook. Moreover, April’s price action continues to confirm weakness. The market still struggles to reverse its course.
