US500: Risk of a Deeper Correction
US500: Channel breakdown should signal a risk of a deeper correction
US500 has been trading inside a rising channel, but recent price action shows clear weakness near the upper boundary. The rejection from the channel top suggests buyers are losing control and a corrective move may already be underway.
If price breaks down of the channel, the bearish scenario should become valid.
A continuation lower could lead to a move toward the first support zone around 5,745, followed by 5,660.
In a stronger sell-off, price could extend down toward the lower target near 5,578, which aligns with previous demand.
You may find more details in the chart.
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