US Market Performance at Close:

Wall Street experienced a tumultuous session at the end of the trading week on Friday, as the S&P 500 Index faced a sharp sell-off and strong profit-taking, retreating from its historic highs and recording a notable decline driven by unexpected US employment data and pressures from the technology and semiconductor sectors.

• Closing Price: 7,383.84 points.

• Daily Change: -200.63 points (-2.64%).

• Highest Level During the Session: 7,541.81 points.

• Lowest Level During the Session: 7,368.63 points.

Technical Analysis and Current Status of the Index

The overall trend remains bullish, and the index is coming off an extended series of gains over 9 consecutive weeks, during which it recorded historic peaks above the 7,600 points level at the beginning of June.

In the short term, the trend has turned bearish and corrective. Friday's session witnessed a violent engulfing bearish candle that closed near the day's lows, indicating complete control by sellers at the end of the week and a real desire to reduce risk.

Upcoming Support and Resistance Levels

• First Resistance: 7,460 points; this level represents the pivot point for recent sessions and has now shifted from a previous support level to a current resistance area that requires high liquidity to surpass.

• Second Resistance: 7,550 points; this range is close to the opening levels of Friday's volatile session, and breaking it would mean the market has fully absorbed the shock of the employment report.

• First Support: 7,330 points; this range represents a near-term bottom and an initial protective barrier to prevent further declines at the market open.

• Second Support: 7,300 points; maintaining the index above this level keeps hopes alive for a quick return of buyers, while breaking this level and closing a daily candle below it would activate a negative short-term pattern.

Expected Scenarios for the Coming Period

Positive Scenario: Requires holding above 7,300, then breaking above 7,460 to prove that Friday's decline was just a quick purge of excessive long positions.

Cautious Scenario: Breaking below 7,300 necessitates reducing immediate long positions and waiting for the market to stabilize around the 50-day moving average at 7,130 points.

Important Guidelines and Strategy for Traders

In times of high volatility and rising fear indicators, high-leverage contracts such as Options or Futures become extremely risky, and it is advisable to reduce contract sizes to maintain a safety margin for your account.

Levels of 7,300 points for the index mark the dividing line between healthy correction and a short-term bearish shift. For day traders or medium-term traders, breaking this level and closing a daily candle below it necessitates activating stop-loss orders or reducing positions.

Conclusion

Do not chase prices at the peak, and use trailing stop-loss orders to protect your profits. Wait for temporary pullbacks to safely open new buying positions.

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