$SPX Hits the Downside Target as the Next Setup Takes Shape
$S&P 500(.SPX)$ has now reached the initial downside objective, with weekly FVG support getting tapped. At the same time, a bullish SMT divergence with $NASDAQ 100(NDX)$ is developing around the August 6 low, suggesting the selloff may be entering a more important decision zone. 👀
The move straight down from the highs looks like the A-wave of an ABC correction. If that structure plays out as expected, the market could spend the rest of the week completing the pullback before setting up for the next leg higher. 📊
🎯 The key level to watch is 7,900.
For the bullish scenario to remain valid, price needs to stabilize around the current FVG support and allow the corrective structure to develop rather than turn into a deeper trend reversal.
Meanwhile, the broader picture is becoming more complicated. Bearish SMT signals are stacking up, with $DJI sitting near the August high and $NDX around yesterday's high. ⚠️ Price is also beginning to invert the nearest bullish Daily FVG support, increasing the odds of another move lower.
The next major downside reference is the Weekly FVG around last week's low. If that level holds, the correction could still become the reset bulls need before another push higher. 🚀
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