S&P 500: Santa Rally or Grinch Selloff?

Investing.com -- The S&P 500 is sitting just below record levels, and according to Sevens Report Research, the market is now “coiled up” at “a technical tipping point that could see significant follow through, either to the upside… or to the downside if stocks fail this retest of the highs.”

After recovering most of the roughly 5% pullback from late October to late November, the index is again within about 1% of all-time highs.

Sevens noted that “the path of least resistance” remains higher, but warned that markets are “primed for volatility or an outsized, squeezy move to new records.”

With year-end approaching, the firm said it is “a good time to have some key technical levels in mind.”

On the upside, the firm stated that initial resistance sits near 6,891, the late-October record close, followed by secondary resistance at 6,920, the intraday high reached the next day.

A close above 6,890 would “elect a measured move target of 7,241,” which Sevens said could be achieved “in the weeks or potentially months ahead.”

Support levels are equally important. Initial support is pegged at 6,738, the opening level from the Nov. 20 session.

The firm called the low close from that same day, 6,539, “a key secondary support level… acting as a line in the sand for the bulls.” They added that a break below 6,539 would trigger a downside target of 6,188.

Sevens also pointed to Fibonacci retracement levels derived from the market’s “38%+ rally off the early April lows.”

Key downside markers include 6,440 (23.6%), 6,161 (38.2%), 5,935 (50%), and 5,710 (61.8%), according to Sevens.

While these levels could offer support, the firm added that a drop beyond anything but the shallowest retracement “is becoming less likely by the day.”

You May Also Be Interested In

• Trump Bought At Least $100,001 In Palantir Shares, Disclosure Shows - Bloomberg
• US property claims fall 8.9% in first quarter of 2026
• Tessenderlo Group to take 20% stake in FMC for $400 million