⬤ The S&P 500 is hanging around 6,940 after running out of steam near the top of a rising wedge on the daily chart. According to the latest setup, SPX is showing cracks as the wedge tightens up and buyers seem less interested in pushing higher. Recent candles have gone nowhere fast near that upper trendline, which tells you all you need to know about conviction after the long climb.
⬤ The chart shows SPX grinding higher since late 2025, carving out higher highs and higher lows inside a narrowing channel. Price managed to kiss 6,950 but couldn't hold the energy. Candles are getting smaller and tighter near resistance, classic wedge behavior where the rally keeps going but runs on fumes as the walls close in.
⬤ Momentum's not backing up the price action anymore. The oscillator at the bottom is flatlining inside a shrinking range, drifting lower even though price is still elevated. That divergence wasn't there earlier in the rally, and it fits perfectly with the wedge squeeze playing out above. There's also a zone marked around 6,930 to 6,940 where short-term reactions are clustering right now.
⬤ What happens next in SPX matters beyond just the index itself. The S&P 500 is the market's pulse check, and when it stalls at a pattern boundary like this, it tends to ripple through sentiment and volatility expectations everywhere. Sitting near the apex of this wedge, how SPX acts in the coming sessions could set the tone for risk appetite across the board.
