S&P 500 Dealer Positioning Signals Caution as Bearish Divergences Emerge
According to the latest market analysis, the S&P 500 (SPX) dealer exposure open interest indicates a critical technical setup. Current charts show price trading near the 6000 positive dealer pressure level, while the 5850 negative dealer pressure zone remains an important downside risk marker.
🔍 Key Observations:
NYSE Advance/Decline Line is showing weakness, signaling reduced market breadth.
Bearish divergences on momentum indicators point to potential short-term exhaustion in the rally.
Price remains above key moving averages, but selling pressure could emerge if sentiment shifts.
💡 Outlook:
Traders are advised to monitor the dealer pressure zones closely. A sustained move above the green resistance band could extend bullish momentum, while a drop below the support zone may trigger broader selling.
