WILL THERE BE FURTHER SELLING? SP500S&P Index Cash CFD (USD)VANTAGE:SP500eediizCurrent SP500 price action is reflective of a indecisive and directionless market. The prevailing uptrend has been replaced with a sideways market for weeks now. Short term price movements are signaling weakness in the indice and technical charts confirm this. Weekly price is dominated by bears and the structures on lower timeframes paint a bearish scenario. In macroeconomic context the US economy grew less than expected at the end of last year, dragged down by a record-long government shutdown, consumer spending and trade. gross domestic product increased an annualized 1.4% in the fourth quarter after rising 4.4% in the prior period. The data does still cap a solid year for the US economy, which shrank in the first quarter amid a monumental pre-tariff surge in imports, only to bounce back later in the year. Strip out the shutdown drag and growth looks closer to 2.5%, with the US consumer still carrying the load and AI-linked investment doing real work,” Olu Sonola, head of US economics at Fitch Ratings. The economy is seen growing at a 2.5% annualized pace on average in 2026 on the back of resilient consumer spending, according to the latest Bloomberg survey Currently the market favors businesses that stand to benefit directly from rising AI adoption, including providers of compute, data infrastructure, observability, cybersecurity, hyperscale cloud and AI development platforms. Consumer spending, which comprises the largest share of economic activity, decelerated to a 2.4% pace from 3.5% in the prior period. The slowdown was mostly due to less spending on durable goods like cars. Health care services spending rose to a record as a share of GDP. Energy, industrials, consumer staples, and a range of international markets have absorbed flows as investors reposition toward areas with more attractive valuations and cyclical tailwinds. Industrials should continue to benefit from the infrastructure buildout required to support AI and electrification, while energy companies remain leveraged to a stable global economy and disciplined supply dynamics. The strongest opportunities are likely to be found in companies that remain tied to durable secular growth trends but have not yet experienced dramatic multiple expansion. My personal idea is that a slow drip of price action will continue for a limited time.