The selling in the S&P 500 index SPX has been more evident in the biggest stocks than across the broader market, and market internals are still relatively strong. But they won't be able to stand up against a full- fledged SPX breakdown. A key support level at 6,800 (the January lows) was broken on Thursday. The next support is at 6,720 (last December's lows), which is critical for the bullish camp. A close below 6,720 would be extremely negative. ...

Market Overview - The S&P 500 is mostly unchanged as it approaches the market close, with a recent selloff after hitting the 6600 level, indicating mixed market participation [1][2] - A key area of resistance is identified at the 6600 level, while the 6583 area serves as a crucial support level for the day [3][4] - The market has experienced a significant uptrend but has recently broken that trend, leading to potential profit-taking ahead of upcoming economic data and geopolitical risks [5][6] Technical Analysis - The E-mini S&P 500 has broken out of a consolidation range, which is viewed as a bullish signal, with MACD in a bullish formation and RSI making higher highs [7][8] - Despite recent red candles, the market's consolidation did not lead to a breakdown but rather a "melt up," suggesting potential continuation in the coming weeks [9] Stock Focus - Tesla is experiencing positive call buying activity, with a confirmed breakout as it approaches the $400 level, and significant bullish activity is noted for December contracts with a $500 strike price [10][11][12] - Microsoft shows a bullish cross in MACD and has broken above the 20-day moving average, indicating potential for a stealth rally as it tests the 50-day moving average [13][14][15]