SPX Stock News: Wave 3 Targets 6,720–6,700 With Downside Risk to 6,500
The S&P 500 (SPX) has back-tested a previously identified sell zone after rallying into resistance but failing to sustain upward momentum. Technical analysts now describe the recent price action as a confirmed bearish WXY corrective structure, shifting focus toward a potential Wave 3 decline.
With downside Fibonacci projections aligning in the 6,700 region and broader risk extending toward 6,500, the index appears technically vulnerable heading into the next phase of price action.
Key Technical Levels and Structure
Bearish WXY Confirmation
Recent price movement formed what analysts characterize as a completed WXY corrective rally — a structure that often precedes renewed downside continuation within Elliott Wave analysis.
According to market commentary, the rally confirmed the bearish pattern, favoring Wave 3 progression targeting 6,720 → 6,700, with broader downside scope toward 6,500.
This structural confirmation increases the probability of sustained selling pressure if support levels begin to fail.
Wave 3 Fibonacci Projections
Measured Fibonacci extensions for Wave 3 project initial downside targets in the 6,720–6,700 range. Additional confluence appears between 6,634 and 6,661, reinforcing this area as a potential magnet for price.
If bearish momentum accelerates, extended downside risk toward 6,500 remains technically viable under the current Elliott Wave framework.
Wave 3 phases are historically the most aggressive portion of an impulse sequence, often characterized by expanding momentum and sustained directional movement.
Key Resistance: Daily Fair Value Gap (6,880–6,812)
A critical resistance zone remains between 6,880 and 6,812, defined by a bearish Daily Fair Value Gap (FVG).
This region represents potential overhead supply and could act as a final liquidity sweep if price stages a short-term bounce. Any rally into this zone may encounter heavy resistance before downside acceleration resumes.
Failure within this range would reinforce the bearish outlook and increase the likelihood of a move toward 6,700 and potentially 6,500.
Why This Matters for SPX
The combination of:
- Confirmed bearish WXY structure
- Wave 3 Fibonacci targets below current price
- Strong overhead resistance at 6,880–6,812
creates an asymmetric risk profile favoring downside continuation unless proven otherwise.
As volatility expands during Wave 3 developments, traders should expect larger price swings and faster directional movement compared to the preceding corrective phase.
Outlook
If SPX remains below the 6,880–6,812 resistance zone, the path of least resistance appears lower, with 6,720–6,700 serving as the primary downside objective.
Should selling intensify, the 6,500 level becomes a realistic extension target under the current Elliott Wave structure.
However, invalidation would require a decisive breakout above resistance, shifting the technical outlook.
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