S&P 500 (SPX): Testing Key Supports — Bounce or Major CorrectionUS SP 500 CFDFOREXCOM:SPX500CH_IndicatorDescription: The S&P 500 is experiencing a sharp pullback on the daily chart, testing multiple critical technical levels. Price is approaching pivotal support nodes, and the coming sessions will determine whether we see a bullish reaction or the breakdown into a larger correction. 🔑 Key Technical Support Levels: Fib 0.786 Daily (~7,432): The immediate horizontal support currently being tested. 200 Daily EMA & Ascending Trendline (~7,200 – 7,300): The core dynamic support cluster maintaining the macro uptrend. 📉 Scenarios to Watch: Scenario A: Daily Supports Hold (Bullish Reaction) If buyers defend the current Fib 0.786 level or the confluence near the 200 Daily EMA + Trendline, the broader daily structure remains bullish, signaling a potential low and continuation move back toward the highs. Scenario B: Trendline Breakdown & Deeper Correction If the ascending trendline and the 200 Daily EMA fail to hold, this invalidates the short-term bullish momentum. A clear breakdown below the trendline opens the door for a major correction targeting the Weekly Support Box (6,300 – 6,600). This macro liquidity zone is the key scenario to keep on your radar if structural support fails. 📊 Trading Approach: Keep a close eye on price action around the 200 EMA and Trendline for lower-timeframe reversal signals (Bullish CHoCH) before taking long entries. Manage risk strictly, as a trendline break confirms further downside toward the weekly demand zone.