Critical Levels Ahead: $SPX Sentiment Extreme, $ES Eyes $6,664, $IWM Holds Edge

Markets are approaching a key inflection point.

Bearish sentiment on $SPX has reached elevated levels often seen near short-term bottoms, while $ES is retesting major moving averages and $IWM shows stronger structure.

The next few sessions will be critical as key levels determine whether a bounce can take hold or downside continues.

1. $S&P 500(.SPX)$

Bearish sentiment stands at 52%, surpassing the bottoms of both the 2023 corrections and the 2024 carry trade unwind.

While bearishness could still drift higher, reaching these extremes have been printed near sustainable bounces.

2. $E-mini S&P 500 - main 2606(ESmain)$

Moment of truth: The 200DMA is being retested, along with the 10DMA which has tamed price action.

Futures must close above $6,664 to consider a potential breakout to $6,746.

Tomorrow SPX has to recover $6,578 and $Invesco QQQ(QQQ)$ $588. All by the close, no fakeouts allowed.

3. $iShares Russell 2000 ETF(IWM)$

Above the 200DMA; today's broke the 10DMA. Better conditions than the $S&P 500(.SPX)$ previously posted.

Tomorrow: Bullish consideration above $248.3 +0.3% (not less), targeting $250 +1.2%, otherwise, $245.3 -0.9% is the next destination.

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