Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

S&P 500 Dives After Failed Test of Price Resistance; Bears Are in Control

by admin March 31, 2025
March 31, 2025
S&P 500 Dives After Failed Test of Price Resistance;  Bears Are in Control

The key resistance level I’ve been watching on the S&P 500 hasn’t wavered. It’s 5782. The bulls had a real chance this past week to clear this important hurdle and they failed. Badly. If this was a heavyweight fight, the ref would have called it after the first round. It simply wasn’t close. Resistance failed, rotation turned bearish, volatility again expanded, and the bears are celebrating another short-term victory.

Check out this S&P 500 chart:

I’ve written about this to EarningsBeats.com members. I posted this exact chart in my StockCharts.com article a few days ago. I’ve discussed it on my YouTube shows. 5782 is THE key short-term price resistance and you can see above that the S&P 500 literally did an “about face” as soon as it touched this resistance. Sellers were lined up. Now that we’ve failed at 5782, it only makes this resistance level that much more important on any future rallies.

The serious technical damage occurred over the past 3 days as consumer discretionary stocks have been absolutely TROUNCED, while consumer staples hangs near its recent highs. If you recall, it was this HUGE disparity in consumer stocks on February 21st that triggered the massive selling episode. Now here we are again with consumer staples stocks (XLP) outperforming discretionary (XLY) by a mile. Check out this chart:

Doesn’t the action in consumer stocks the past 3 days exactly mirror the action we saw in the 2nd half of February and into the first week of March? Folks, this isn’t good.

This is just the tip of the iceberg.

Bear Market Ahead?

The S&P 500, from its recent all-time high to its subsequent low, fell 10.4%, which marks correction territory. The rally we saw off the March 13th low was likely due to oversold conditions, along with March options expiration. On Tuesday, March 18th, we discussed with our EB.com members that odds favored a short-term rally, based on max pain and we laid out key resistance from 5670 to 5782, with the 20-day EMA falling in the middle of this price range. Once we failed at 5782, it was very important to gauge the nature of any new selloff. That’s what I’ve been evaluating this week and it’s not pretty. As you can see in the chart above, money has once again started rotating into the XLP and out of the XLY. This is one of the most important intermarket relationships and it’s screaming BEARISH ACTION AHEAD!

It’s only one signal, however. I announced a few days ago that we’d be hosting a FREE webinar on Saturday morning, March 29th, at 10:00am ET. I plan to discuss several signals that are pointing to exactly what we saw on Friday – more selling. To get a better handle on current market conditions and where we’re heading, I’d encourage you to join me Saturday morning by REGISTERING HERE. If you can’t make the live webinar, we’ll still send out the recorded video to all who register, so ACT NOW!

And here’s a little secret. Shhhhhhh! Market makers are playing some serious games manipulating some of the biggest stocks. I’ll talk a bit about how we can take advantage of that Saturday morning. Hope to see you there!

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
David Morgan: Silver Squeeze 2.0 — Will Price Run on March 31?
next post
AMC bets on premium screens as Hollywood slate boasts big blockbuster titles

Related Posts

Small-Caps and Retail Hold the Line in the...

October 7, 2023

Rules-Based Money Management – Part 5: Security Selection,...

May 17, 2024

Slower Job Growth, Treasury Yields, Earnings: Stock Market...

August 4, 2023

David and Goliath, or the Small vs. Large...

July 15, 2023

Stock Market Ends Week on Optimistic Note, With...

May 25, 2024

The Halftime Show: Defense and Value on the...

July 25, 2023

LUV Stock: Will Tailwinds Make the Stock Soar?

July 6, 2023

The Hoax of Modern Finance – Part 2:...

December 9, 2023

Sector Spotlight: Risk to S&P as Technology Under...

August 8, 2023

Harness The Strength of Power Gauge on ACP...

October 31, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    • Gold’s Meteoric Rise: Can the Price Break US$4,000 in 2025?

    • COB: Repayment of Promissory Note

    • Lo Herma Resource Drilling Timing Confirmed

    • Reinstatement to Quotation

    • Tariff Talks: Swiss Propose Investment in US Gold Refining

    Categories

    • Business (1,395)
    • Investing (2,975)
    • Politics (3,699)
    • Stocks (1,807)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved