Technical analysis by TradingShot about Symbol SPYX: Sell recommendation (1/6/2026)

The S&P500 (SPX) has reached a point where it could be on the verge of initiating a new Bear Cycle as the price action that led to the end of 2025 (mostly Q4) has been very similar with the one in late 2021 that kick-started the 2022 Bear Cycle. What confirmed that Bear Cycle was the market closing a 1W candle below the 1D MA100 (red trend-line). This is extremely critical as it has already proven its role as a catalyst during the most recent short-term pull-back in November, where it held upon tested on the week of November 17 2025 and thus rebounded. This is exactly what took place in November 2021, with the index eventually closing a 1W candle below the 1D MA100 almost 2 months later on the week of January 17 2022. That confirmed the 2022 Bear Cycle as the sell-off was accelerated and in just 1 week, the market even hit the 1W MA50 (blue trend-line). The structure between the two fractals is so far very similar, with a huge 1W RSI Bearish Divergence (Lower Highs against price's Higher Highs) leading the index towards a potential Top. If the price action continues to repeat that of 2022, then we are looking at the very real possibility of a -27.60% overall correction within roughly 12 months time, with the first potential Target being the 1W MA200 (orange trend-line) around 5350 and second the full -27.60% extension at 5050. Those two levels technically form the potential Buy Zone for the next Bull Cycle. The metric though that cannot be ignored as far as long-term buying is concerned, is the 1W RSI, which has historically given optimal buy opportunities when it turned oversold (i.e. 30.00 or below). If this level is hit before any of the above two Targets, we will be turning into long-term buyers again regardless. --- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. ** --- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇