SPX 6900 is showing powerful bullish momentum, rallying 18.20 percent on the day and continuing its streak of higher highs and higher lows. Price is now approaching a potential breakout zone, with strong support below and a bullish continuation pattern forming on the chart. A Fibonacci extension points to $2.20 as the next major upside target, if current structure holds.
After bottoming out near the $0.25 region, SPX6900 (SPX6900) has been in a strong uptrend, marked by consecutive higher lows and higher highs. This structure has consistently reclaimed major volume levels and flipped resistance into support. Now, with price consolidating just under all-time highs and forming what could be a bullish pennant, traders are watching for a continuation move toward the $2.20 region.
Key technical points
- Value Area High + Daily Support at $1.42: As long as price holds above this zone, the uptrend remains structurally intact.
- Bullish Pennant Formation Possible: Price is consolidating just beneath ATH, with converging support and resistance pointing to a breakout setup.
- Fibonacci Extension Target at $2.20: Taken from the last swing low to high, the 0.618 extension projects further upside if breakout occurs.
SPX 6900’s market structure remains one of the strongest in the current cycle. After establishing a macro low around $0.25, price action reversed sharply, reclaiming the 200-day moving average, breaking past major volume profile levels, and confirming each breakout with a bullish retest. This has led to the formation of solid high-timeframe support zones, which continue to hold.
Most recently, a key reaction came from the 0.618 Fibonacci retracement, which produced a strong rally into all-time high territory. Now, price appears to be consolidating in a pennant formation, a classic continuation setup where price coils in equilibrium before a decisive breakout. This pause in momentum is backed by strong volume, suggesting healthy buying interest and sustainable trend conditions.
The current critical support zone lies between the value area high and daily support at $1.42. As long as price remains above this level, and the pennant structure continues to develop, a breakout toward $2.20, the 0.618 Fibonacci extension from the last leg, becomes increasingly probable.
What to expect in the coming price action
SPX 6900 remains in a high-momentum uptrend, and the current consolidation phase could lead to another impulsive breakout. If the $1.42 support zone holds and price breaks above the pennant, a move toward $2.20 is the next likely target. Until structure fails, bullish continuation remains the base case.
