SPX Consolidates After Rally: Pullback or Bullish Continuation?

SmartReversals
08-09

$S&P 500(.SPX)$ is consolidating after a strong rally, with key gap levels below acting as potential magnets.

Semiconductor leaders like $Micron Technology(MU)$ and $Advanced Micro Devices(AMD)$ remain weak, while $Amazon.com(AMZN)$ $Microsoft(MSFT)$ $NVIDIA(NVDA)$ are entering a healthy consolidation phase. $SpaceX(SPCX)$ continues to show constructive price action.

$SPDR S&P 500 ETF Trust(SPY)$ Price is attempting to build a base above 765, which could become a launchpad if this support holds.

However, the 758 gap remains open and is likely to be filled eventually. The market has seen similar patterns before, including a gap that stayed open throughout May.

$E-mini S&P 500 - main 2609(ESmain)$ Price has moved back inside the Bollinger Band range, but next week will be important to confirm whether this is a healthy consolidation or the start of another pullback toward the 20-day moving average or even the lower Bollinger Band.

The key question remains: another bullish continuation like April, or a deeper retracement ahead?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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