The S&P 500( SPX500 ) rallied after the probability of an agreement between Iran and the United States increased, allowing the index to print a new All-Time High(ATH).

However, the rally over the past week has been accompanied by relatively low trading volume, which may indicate weakening bullish momentum.

Can the S&P 500 print another ATH, or is a deeper correction beginning?

Macro Outlook

Improving expectations surrounding a potential U.S.–Iran agreement supported risk sentiment and helped U.S. stock indices move higher.

However, the lack of strong trading volume during the recent rally raises concerns about whether buyers have enough strength to sustain the bullish trend.

Technical Analysis

The S&P 500 has reacted to the Potential Reversal Zone(PRZ) and has started to move lower.

From an Elliott Wave perspective, the index appears to have completed, or is very close to completing, its main wave 5.

💡 Educational Note: When an index reaches a new ATH with declining or weak volume, it can indicate reduced market participation and increase the risk of a pullback.

I expect the S&P 500 to decline toward the key trading level of $7,637.

If bearish momentum increases, the index could break below the Support Zone and eventually fill the lower gap.

Trade Setup

First Take Profit(TP): $7,637

Second Take Profit(TP): $7,614

Stop Loss(SL): $7,804

Which level do you think the S&P 500 will reach first?

🔴 $7,614

🟢 $7,804

📌 S&P 500 Analysis(SPX), 4-hour time frame.

🛑 Always use proper risk management and set a Stop Loss(SL) for every position.

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