The S&P 500 is showing clear signs of pressure [Video]

The S&P 500 is showing clear signs of pressure, and the technical picture is starting to confirm it. The failure swings at the base of the trend channel remain a key signal for further weakness, reinforced by the Double Top formation around the 6921/6919 area.

The inability to break above this zone triggered the decline from 12 December, and the market now looks set to test 6683 as the first downside target, with 6535 offering deeper potential support. I expect buyers to emerge initially at these lower levels, with short‑covering likely to follow.

For now, any rally appears to be an opportunity to re‑establish short positions. 6769 is the first upside level to watch. If the market fails here, it would signal further weakness ahead. A break above 6769 opens the door to 6823/6826, which I expect to act as a cap.

Seasonally, we often see what’s known as the Santa Rally, typically lasting into the second week of January. Even so, this may simply provide better levels to sell into. Weekly charts have now turned negative — and that’s where the larger, longer‑term players tend to position themselves.

Staying alert to these levels will be key in the coming sessions. This is not to be construed with Investment advice, my money, my risk.