US500 Short Term Correction S&P 500SP:SPXWiseLeoTrading US500 Snapshot US500 is experiencing a sharp pullback driven by heightened risk aversion, rising Treasury yields, and defensive repositioning ahead of major US macro data releases. Sentiment turned noticeably bearish, and technical patterns point to a shift towards correction after months of bullish momentum. Fundamental Broad sentiment was bearish today while equities declined and volatility (VIX) spiked. Defensive sectors (utilities, healthcare, consumer staples) outperformed while tech and growth stocks led losses. Investors are responding to seasonal September risks, rising bond yields near 4.5%, Fed rate cut uncertainty, and anxiety from recent legal and policy headlines Technical The index is now in a short term correction, ending a strong summer rally and moving off all time highs, reflective of portfolio rebalancing and increased caution typical for September. A confirmed daily close below 6,336 would increase the likelihood of a deeper retracement wave targeting 6,000 Current momentum favors near term downside until macro trends, notably labor data and Fed signals, clarify the outlook. Momentum has shifted towards testing the downside with 6,345 – 6,336 as critical areas to monitor for increased volatility and potential accelerated selling Key Levels Resistance 6,500 –6,545, Recent all-time high region, upside cap Support 6,428First key support, Strong Support6,345Lower floor, downside target if selling persists Analysis by Terence Hove, Senior Financial Markets Strategist at Exness