This website 06/19/25 blog illustrated that the S&P 500 (SPX) had formed a rounding top – a prelude to a sharp decline.
06/20/25 was a quadruple witching day. This event occurs four times a year, specifically on the third Friday of March, June, September, and December. These days, four types of financial derivatives expire simultaneously: stock options, stock index options, stock index futures, and single stock futures.
There’s a high probability that arbitrage action on 06/20/25 delayed a sharp decline in U.S. stocks, there’s still a huge risk for a sudden drop.
The SPX – hourly chart courtesy of Trading View updates the action.
The SPX broke below important support at the 06/13/25 bottom then stayed in a narrow trading range.
The next support level is the 06/05/25 bottom, below that is a Fibonacci .618 retracement of the 05/23/25 to 06/11/25 rally.
Hourly RSI remains in the low 40 area; the oversold zone begins at 30.00.
If on 06/23/25 SPX breaks below the 06/05/25 bottom at 5,921.20 it could trigger a rapid drop to the 5,700 area.
Four Dimension Trading 