SPX6900 Faces Crucial Test At $1.42 Resistance

SPX6900 has experienced a notable rebound after a steep decline, but it now encounters significant resistance at $1.42. The failure to surpass this level could confirm a full bearish structure shift, potentially leading to further downside movement.

After reaching an all-time high, SPX6900 underwent a dramatic drop, breaking below previous higher lows and invalidating the bullish market structure. The current rebound, while strong, is testing a dense confluence of resistance levels, suggesting this move could be a bearish retest rather than a true reversal.

Key technical points include the bearish market structure, with lower highs and lower lows now in place after the trend break. The critical resistance at $1.42 is marked by the point of control, the 0.618 Fibonacci retracement, and a high time frame level alignment. If the price fails to reclaim this level, the value area low becomes the next key downside target, indicating a full auction rotation risk.

The loss of the higher low structure marked a major technical shift for SPX6900. For weeks, the price action had maintained a clear uptrend, printing consecutive higher lows en route to an all-time high. However, the recent drop broke this sequence, forming a new low and shifting the trend into bearish territory.

The current bounce has pushed the price back into the $1.42 resistance zone, a level loaded with technical significance. This marks a high time-frame resistance level, aligning with the point of control of the current trading range and the 0.618 Fibonacci retracement from the recent decline. Together, these form a strong confluence that the price must reclaim to begin rebuilding bullish momentum.

Without a clean break above this area, the current price action is best interpreted as a bearish retest, a common technical reaction after a market structure breakdown. This scenario increases the likelihood of a continuation move to the downside, with the value area low acting as the next key target.

If this auction rotation completes, it would confirm the transition from an uptrend to a developing downtrend, with lower highs and lower lows defining the new structure. Adding to this, there is significant inefficiency and untested liquidity below the current price. These areas often act as magnets, drawing the price lower before any sustained reversal can occur. That increases the probability of a continued move downward unless bulls can defend critical levels on any retest.

SPX6900 is currently trading at a make-or-break resistance zone. If bulls reclaim $1.42 and flip it into support, it could stabilize the trend. However, failure to break above will likely confirm a bearish retest and trigger a move toward the value area low. Immediate support sits at $0.97 and must hold to prevent further downside acceleration.