U.S. Market Performance at Close:

The S&P 500 index ended Tuesday's trading slightly lower, affected by rapid and unexpected fluctuations led by technology and artificial intelligence stocks, which reversed some of the gains made at the beginning of the session.

• Closing Price: 7,386.65 points.

• Daily Change: -19.08 points (-0.26%).

• Highest Level During the Session: 7,483.15 points.

• Lowest Level During the Session: 7,237.85 points.

Technical Analysis and Current Status of the Index

After the historic highs recorded by the index at the beginning of June, the price is currently undergoing a temporary technical correction and profit-taking, driven by increased selling momentum and the prices' attempt to retest important support areas to gather new upward liquidity.

Overall trend: The index still retains its overall upward trend in the medium and long term, supported by the gains achieved since the beginning of the year +7.91%, and the current movement is classified as a short-term downward corrective movement within the main upward channel.

Upcoming Support and Resistance Levels

• First Resistance: 7,438 points, representing the opening point of the previous session and the area of rapid fluctuations; breaking through this level would restore momentary positivity for speculators.

• Second Resistance: 7,483.15 points, the highest peak recorded by the index in Tuesday's session; exceeding this level and maintaining a daily close above it is a clear signal of the end of the momentary correction.

• First Support: 7,333 points, representing a minor low and a medium rebound level that has successfully mitigated the decline during recent trading.

• 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 model in the short term.

Expected Scenarios for the Coming Period

Scenario One: Positive Rebound and Continuation of the Upward Trend

If the index successfully absorbs the current selling pressures and rebounds from nearby support levels, oscillating temporarily sideways above the 7,300 - 7,333 points range to gather new buying momentum, it may then begin to break through momentary resistance levels at 7,483 points, followed by the level of 7,553.68 points.

Scenario Two: Correction

Increased selling pressure and continued market impact from the high overbought condition prior to this decline; if the index breaks the 7,300 points level with a clear daily close, it will head directly to test the low of Tuesday's session at 7,237.85 points. If the downward momentum continues, the technical correction may extend to touch the strategic support area at 7,150 or even the strong psychological support level at 7,000 points.

Important Guidelines and Strategy for Traders

Do not increase your large buying quantities until after breaking the level of 7,483 and stabilizing above it, or after returning and clearly rebounding from last week's closing levels around 7,553.68 points.

Monitor levels of 7,237.85; breaking this low is the official signal to reduce positions and activate hedging strategies.

For day traders, breaking the level of 7,300 with a one-hour close is a signal for temporary exit.

For short to medium-term investors, breaking the low of Tuesday 7,237.85 with a daily close is a safety valve to protect previous profits.

Conclusion

Do not chase prices at the peak and implement trailing stop-loss orders to protect your profits; wait for temporary pullbacks to safely open new buy trades.

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