Wall Street's Next Move Starts HereS&P 500SPCFD:SPXledora037The S&P 500 has recovered impressively after last week's 1.52% decline, with buyers reclaiming the critical 7514 level and shifting short-term momentum back in favor of the bulls. The recent bounce from the Fair Value Gap (FVG) confirms that demand remains strong, while the broader trend continues to print higher highs and higher lows on the 4H timeframe. Why Did SPX Fall 1.52%? The selloff wasn't driven by a single event but by a combination of macro and geopolitical factors. 1. Profit-taking after record highs After an extended rally fueled by AI optimism and strong earnings, investors locked in profits near all-time highs. Such pullbacks are healthy in strong uptrends and often provide institutions with better accumulation levels. 2. Rising geopolitical tensions Markets became more cautious as tensions in the Middle East continued to create uncertainty around global energy supplies. Any escalation involving the Strait of Hormuz raises concerns about oil disruptions, which can quickly push crude prices higher and reignite inflation fears. 3. Inflation and Federal Reserve expectations Higher energy prices increase the risk that inflation remains sticky. If inflation accelerates, the Federal Reserve could keep interest rates elevated for longer, reducing expectations for future rate cuts and weighing on equity valuations. Despite these concerns, buyers stepped in aggressively once SPX reached a key demand zone, showing that institutional confidence in the broader trend remains intact. Technical Analysis The correction filled a bullish Fair Value Gap before buyers reclaimed control. Price has now moved back above the important 7,514 resistance, turning it into support. Bullish Signals Higher highs and higher lows remain intact. Strong reaction from the FVG demand zone. Resistance at 7514 has flipped into support. Buying momentum continues to strengthen. Key Levels Support: 7514 Resistance: 7626 Bullish Target: 7629+ Demand Zone: 7370-7410 (FVG) A confirmed 4H close above 7626 would likely trigger another wave of buying and increase the probability of fresh all-time highs. What Should Traders Focus On This Week? Several catalysts could determine whether this breakout continues. > U.S. CPI inflation data > Federal Reserve communication and rate expectations > Q2 earnings from major U.S. banks > AI-related earnings guidance from large-cap technology companies > Any escalation in Middle East geopolitical tensions and its impact on oil prices Strong earnings combined with softer inflation would reinforce the bullish outlook. On the other hand, hotter inflation or worsening geopolitical risks could increase volatility and lead to another test of support. Trading U.S. Markets with rToken on Bitget 2.0 One reason many crypto-native traders are watching U.S. equities more closely is the availability of Bitget rToken. Tokenized real-world assets allow traders to gain exposure to major U.S. stocks and market themes directly with USDT, without switching between traditional brokerage accounts and crypto exchanges. This makes it easier to react to macro events, earnings releases, and market-moving news from a single ecosystem while participating in both crypto and traditional market opportunities. Outlook The recent 1.52% correction appears to have reset momentum rather than changed the overall trend. As long as 7514 holds, the bullish structure remains intact. A breakout above 7626 would confirm buyers are back in control and could open the path toward new record highs. What do you think? Is this the start of the next leg higher, or will macro risks trigger another pullback first?