SPX6900 Plunges 16%: Correction or the Start of a New Rally

SPX6900 has dropped 16% in the past 24 hours, but this may be merely a corrective adjustment rather than a trend reversal. Over the past month, SPX6900 recorded a 106% gain, and the current decline is viewed as a correction. Technical analysis indicates that SPX may experience further declines toward a key support zone before staging a strong rebound. This support area has triggered price increases multiple times; if it fails to hold, the price could further test three critical 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 support near the lower band, a level that has historically sparked rebounds. The Money Flow Index (MFI) indicates a decrease in capital inflows, but it remains in bullish territory, suggesting that buying interest could return at any time. Sentiment in the derivatives market remains bullish, with funding rates turning positive, indicating that long traders are dominant. Despite a decline in open interest, investor confidence remains strong. Overall, the sharp drop in SPX6900 appears to be more of a correction, with the potential for a new round of rebound ahead.