SPX6900 has dropped 16% in the past 24 hours, but this may just be a corrective adjustment rather than a trend reversal. Over the past month, SPX6900 recorded a 106% increase, and the current decline is seen as a correction. Technical analysis indicates that SPX may experience a strong rebound after further decline in the key support zone. This support zone has triggered price increases multiple times, and if it fails to hold, it may further test three key reversal points at $1.30, $1.22, and $0.91. The Bollinger Bands indicator shows that SPX has fallen below the middle band and may test the support level near the lower band, which historically often triggers a rebound. The Money Flow Indicator (MFI) shows reduced inflow, but it remains in the bullish range, suggesting that buying may return at any time. Sentiment in the derivatives market remains bullish, with funding rates turning positive, indicating that long traders are dominant. Although open interest has declined, investor confidence remains strong. Overall, the sharp drop in SPX6900 appears more like a correction, with the potential for a new round of rebound in the future.
