‘Key Support Levels Tested Across Stocks, Gold, and Bitcoin”

S&P 500

The S&P 500 opened sharply lower on Friday, weighed down by heavy losses in European markets. The index quickly stabilized, however, with its session low set within the first five minutes. Early selling pressure was tied to uncertainty over the Federal Reserve’s December decision – whether they act or hold steady – as well as growing chatter that the AI-driven rally may have overheated.

From there, buyers stepped in, lifting the index for most of the day. But a sharp spike in interest rates late in the session erased those gains, leaving the S&P unable to hold its footing into the close.

In yesterday’s update, we noted that the S&P was approaching its short-term trend line (the diagonal line on the chart) and that a break could lead to a test of stronger support at 6535 (the green horizontal line). The index opened below this trend line but managed to close right on it. Monday’s session will be key – holding above this level would signal that upward momentum remains intact.

Gold

Gold dropped more than $90 on Friday, pulling back toward its established uptrend line. As noted previously, a decisive break below this support would set the stage for a retest of the 3900 area.

Bitcoin

Bitcoin is now pressing against the lower boundary of its uptrend channel, a level that has held on four separate occasions since October 2023. This makes the current support zone especially important. For buyers to regain the upper hand, Bitcoin needs to rebound and firmly reclaim the psychologically key 100,000 level. A move above that threshold could trigger short covering and fuel a sharp rally.

However, if this support breaks, the door opens to a deeper correction, with next major support near the 77,000 area.

Stay tuned!