S&P 500: Big Dip Incoming - Wedge Confirmed

📉 S&P 500: Big Dip Incoming - Wedge Confirmed and Correction to 5,600 Points

The S&P 500 just confirmed today (02/05/2026) a concerning technical formation that has historically preceded significant corrections: a falling wedge that could lead the index to a substantial drop in the coming weeks.
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📊 The Technical Pattern
After reaching highs near 7,000 points at the end of January, the index has been forming a wedge that was confirmed with today's breakdown, with price falling to the 6,837 region. This pattern is not new - and that's exactly what makes the situation more concerning.
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📉 Historical Precedents
This same technical formation appeared at critical moments:

2022: The major correction was preceded by a similar wedge, resulting in significant drops

Early 2025: Again the pattern repeated, signaling volatility and correction

The repetition of this technical setup is not coincidence - it's the market showing buyer exhaustion at tops.

🎯 Projection and Target
Based on the wedge structure and Fibonacci projections, the primary target is at 5,600 points, which represents a correction of approximately 18% from current levels. This move would be consistent with historical corrections after similar formations and should not stop there.

Disclaimer: This is a technical analysis based on historical patterns. Always trade with proper risk management.