{"id":30158,"date":"2026-03-09T15:03:54","date_gmt":"2026-03-09T15:03:54","guid":{"rendered":"https:\/\/www.vtmarkets.com\/in\/uncategorized\/middle-east-war-risks-push-the-sp-500-down-extending-falls-from-january-highs-after-a-gap-lower\/"},"modified":"2026-03-09T15:03:54","modified_gmt":"2026-03-09T15:03:54","slug":"middle-east-war-risks-push-the-sp-500-down-extending-falls-from-january-highs-after-a-gap-lower","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-mena\/live-updates\/middle-east-war-risks-push-the-sp-500-down-extending-falls-from-january-highs-after-a-gap-lower\/","title":{"rendered":"Middle East war risks push the S&P 500 down, extending falls from January highs after a gap lower"},"content":{"rendered":"The S&P 500 has moved lower since the January highs and remains under pressure, with a gap down this week changing the prior technical view. The move is now described as a fifth wave within a higher degree corrective pattern.\n\nIf this scenario holds, the decline could extend towards the 6,370 to 6,500 support area, with 6,772 acting as a key level. A move that overlaps and closes above 6,772 would invalidate the view of a bearish incomplete impulse within wave C from a larger wave B triangle.\n\n

Key Resistance And Gap Levels<\/h3>\nA gap around 6,700 from Sunday is also flagged as possible resistance early in the week. A rebound towards 6,700 followed by another drop would still align with the bearish setup.\n\nFor a more bullish read, one approach is to wait for the drop from 6,970 to finish. Another is to wait for an overlap and a daily close above 6,772, which would indicate that a low may already be in place.\n\nWe believe the upward momentum from the January 2026 highs has ended, and the S&P 500 is now in a larger corrective pattern. The VIX, often called the market’s fear gauge, has just climbed above 25, reflecting a significant increase in trader anxiety. This suggests that simply buying this dip may be a risky strategy in the immediate future.\n\nThe pressure on stocks is being magnified by growing geopolitical risks in the Middle East, along with last month’s hotter-than-expected CPI report which has dampened hopes for near-term rate cuts from the Federal Reserve. We see this combination of factors supporting a continued move lower for the index. The decline in the S&P 500 is now over 8% from its peak earlier this year.\n\n

Positioning And Confirmation Signals<\/h3>\nGiven this outlook, derivative traders could position for a drop toward the 6370 to 6500 support area, potentially using put options or bear put spreads. The recent CBOE put\/call ratio hitting 1.15, a high not seen since the pullback in the fall of 2025, indicates many are already preparing for further weakness. These bearish strategies would be invalidated if the market manages a daily close above the 6772 resistance level.\n\nIn the immediate short term, we are watching the resistance level around 6700. A bounce to this area that fails and turns back down would be a strong signal that the bearish trend remains intact. This could present a favorable entry point for traders to initiate or add to short positions.\n\nFor those looking for a bullish reversal, it seems prudent to wait for more confirmation. One option is to wait for the decline to fully play out and find support in the 6370-6500 zone. Alternatively, a decisive break and close above 6772 would signal that a low might already be in place, though time feels to be running out for this scenario.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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S&P 500 declines from January highs; fifth-wave correction targets 6,370\u20136,500, with 6,772 breakout invalidating bearish view.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-30158","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t