SPX Structure: Why Bears Should Stand Ready

Analyzing the next phase of price action following the reach of our primary bullish target

The stock market continues moving in euphoric mode, and the question now is: what is coming next? Today, 7,460 was reached by the SPX, very close to a level I anticipated since November 2025. We are going to study what to expect from the market moving forward, considering the current overbought conditions and the recent price action.

Regarding our high-probability trades posted last Saturday, a bullish move was anticipated for Tesla, targeting 445 for a 3.5% move 🎯. That target was reached and surpassed today. Now, monitoring price action using daily levels is worth considering, as the stock is showing some overextended conditions.

Another bullish setup anticipated was Apple, targeting 300 🎯. That level was the high of the day today, completing a 2.4% move for the week. For Visa, there was an expectation for a bullish reversal upon recovering 321. It reached the bullish target of 327 for a 2.6% move yesterday before the price reversed 🎯. This reversal is why I highlight caution with Apple and Tesla, considering overbought conditions in the broader market.

In Saturday’s Setups Blueprint, there were bearish considerations for JPMorgan. JPM reached our bearish target of 296 🎯 for a 1.9% move yesterday before spiking; anyway, the Central Weekly Level rejected the price again yesterday, leading to bearish price action today.

Risk management is key in these high-probability setups, as seen this week with Eli Lilly (LLY). I anticipated potential “red” before a bullish continuation, but that continuation happened sooner than expected. Any potential short position based on the bearish setup found its risk management trigger at 964 ⚠️, the Central Weekly Level that invalidated the bearish bias. The price has since flipped the setup and reached 1,013 as an extended bullish target.

This week, there was also an expectation for IBIT reaching 48.5 for a 6.8% move. That level was reached 🎯 , and IBIT is now mirroring Bitcoin by printing a healthy consolidation after the run we anticipated in the Weekly Compass. Another bearish setup highlighted was XOM, but like Lilly, it bounced sooner than expected ⚠️. It recovered the Central Weekly Level of 147.9, triggering capital protection, and is now showing indecision at the weekly bullish layer of 151.9.

Other setups to watch were also posted, such as Costco. The bullish target for COST was 1,025.5 (a 1.7% move), but it has since been extended to 1,042.1 for a total move of 3.3%. Paid subscribers know how important it is to monitor the surpass of a specific annual level we have watched for weeks.

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SPX Hits Overbought Territory as NDX Overheats

Setups for other securities, including Amazon, Nvidia, Broadcom, the rest of the Magnificent Seven, and major indices like QQQ, SPY, DIA, SMH, and VXX, are posted every Saturday. Subscribe to get access to these studies, and do not miss today’s special content regarding what to expect after reaching the major bullish targets we have anticipated since November.

Let’s begin with today’s special study.