SPY

The S&P 500 is trading on this line, and has seen a notable rise since Friday following a surge of interest in artificial intelligence, then paused temporarily yesterday. The index reached 775 points, and the question was: Will it reach 780 points?

Will it achieve new record levels on the S&P 500 index? We definitely felt that on Monday. But to say that we have seen a major reversal so far would be accurate. We have fallen by about 1% from yesterday's highs on the Standard & Poor's index.

So, we're starting here with the with the S&P. And today, the S&P is kind of not doing a whole lot, right? We initially looked to open up slightly higher and even pushed up. We're up about half a percent.

Look like we're going to tackle those potential all-time highs again. Not quite. Big reversal in the markets.

First, guys , with the Standard & Poor's 500 index. Okay, the Standard & Poor's 500 index on the daily timeframe, as you can see here, what did we reach at the highest level of today's price movement?

We have reached the descending trend line , the trend line we have been talking about since the moment we identified the pivot points after the S &P 500 hit a new all-time high.

If you are looking at the E-Mini S&P 500 index, and if you are one of those day traders, it has been trading above the volume- weighted average price since last night. So, this is actually a somewhat positive sign .

We are trying to recover a little here. You need to stay above the average daily volume-weighted price to give a little confidence that you are actually able to recover some of these levels.

First off, guys, with the S&P 500, we see here on the S&P 500 daily chart. What happened over the last two trading days, guys, we had a rip roaring rally on Monday, pushing us above this declining trend line.

But then what happened here on Tuesday, guys? We didn't push up further than the high on Monday's candle. More or less, we didn't get any further extension. Look at what that does to the chart when price breaks out from a certain line. that that extension move is critical to maintain the breakout scenario on this chart.

And the S&P 500, guys, did not do it. We simply are coming straight down on the chart as you see here for the day.