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S&P 500 may face a 10% correction after failing to break recent highs, signaling potential market pullback.

Technical Signals
29 Jul 2026
Finbold
View Source
Bearish
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Technical analysis by TradingShot suggests the S&P 500 could drop about 10% after failing to surpass recent highs, forming a double-top pattern and bearish signals like resistance at the 50-day moving average and a declining RSI. Historically, similar setups led to corrections near the 70-week moving average, around 6,865 points. Despite this, the S&P 500 has had a strong year with gains supported by solid earnings and economic data, and Wall Street expects further gains by year-end. Investors should watch for potential downside while considering the strong fundamental backdrop.

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