Key S&P 500 Level to Watch Before the U.S. Election—Breaking It Could Spell Trouble

This price action could indicate profit-taking or position trimming ahead of expected market volatility due to upcoming political events.

The uptrend remains intact, and minor price corrections can be healthy for the continuation of the current trend. However, last week’s close fell below a key support level of 5765, which could signal some caution.

From my analysis, a much stronger support zone lies between 5597 to 5629. If the price breaks below 5597, it may signal the end of the current uptrend, potentially leading to a deeper correction toward the 5400 level. This pullback could be an opportunity for those looking to enter at lower prices - I’ll update again when the price enters the bullish zone predicted by my system - remember to follow me so you won’t miss out on any of my posts.

For those considering a hedge on existing long positions, Soc Gen’s short DLCs on the S&P 500 offer a way to gain value if the index heads downward.