📉 S&P 500: Big Dip Incoming - Wedge Confirmed and Correction to 5,600 Points
The S&P 500 just confirmed today (02/05/2026) a concerning technical formation that has historically preceded significant corrections: a falling wedge that could lead the index to a substantial drop in the coming weeks.
📊 The Technical Pattern
After reaching highs near 7,000 points at the end of January, the index has been forming a wedge that was confirmed with today's breakdown, with price falling to the 6,837 region. This pattern is not new - and that's exactly what makes the situation more concerning.
📉 Historical Precedents
This same technical formation appeared at critical moments:
2022: The major correction was preceded by a similar wedge, resulting in significant drops
Early 2025: Again the pattern repeated, signaling volatility and correction
The repetition of this technical setup is not coincidence - it's the market showing buyer exhaustion at tops.
🎯 Projection and Target
Based on the wedge structure and Fibonacci projections, the primary target is at 5,600 points, which represents a correction of approximately 18% from current levels. This move would be consistent with historical corrections after similar formations and should not stop there.
Disclaimer: This is a technical analysis based on historical patterns. Always trade with proper risk management.
The S&P 500 just confirmed today (02/05/2026) a concerning technical formation that has historically preceded significant corrections: a falling wedge that could lead the index to a substantial drop in the coming weeks.
📊 The Technical Pattern
After reaching highs near 7,000 points at the end of January, the index has been forming a wedge that was confirmed with today's breakdown, with price falling to the 6,837 region. This pattern is not new - and that's exactly what makes the situation more concerning.
📉 Historical Precedents
This same technical formation appeared at critical moments:
2022: The major correction was preceded by a similar wedge, resulting in significant drops
Early 2025: Again the pattern repeated, signaling volatility and correction
The repetition of this technical setup is not coincidence - it's the market showing buyer exhaustion at tops.
🎯 Projection and Target
Based on the wedge structure and Fibonacci projections, the primary target is at 5,600 points, which represents a correction of approximately 18% from current levels. This move would be consistent with historical corrections after similar formations and should not stop there.
Disclaimer: This is a technical analysis based on historical patterns. Always trade with proper risk management.
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Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.