Chart: S&P 500 (SP500) Reversal Possible?

US stocks appear to have run out of momentum and it looks like this stock index is gearing up for a major reversal.

Has the uptrend reached the end of the curve?

Check out these inflection points on the daily time frame!

Daily chart of the S&P 500 Index (SP500) from TradingView

In case you missed the latest market recap, you should know that the US stock market is back in sell mode thanks to another decline in the tech sector and general risk-off vibes.

In particular, Nvidia shares led the decline with a massive 9.5% drop, followed by shares of other chip companies. Even the likes of Alphabet and Netflix weren’t happy about the ruin!

The S&P 500 lost more than 2%, falling after retesting the broken long-term uptrend line visible on the daily time frame.

Does this mean that the US stock index is in a long-term downtrend?

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on stocks and market sentiment yet, then it’s time to check the economic calendar and catch up on the daily fundamental news!

The index is closing in on the nearby bearish target at the pivot point (5,464.65) and sustained bearish momentum could fuel further losses towards S1 (5,274.55) near its August lows.

The 100 SMA is, however, above the 200 SMA, which suggests that the path of least resistance is up, or that there is still a chance for the long-term uptrend to resume.

Watch for a move below the 100 SMA dynamic support as this could be further confirmation of a trend change. Also, sit carefully market highlights this weekincluding the top US NFP version!