Discovering Potential Support Areas

If the S&P 500 (SPX) soon declines, two methodologies could discover potential support zones.

The weekly SPX chart courtesy of Trading View illustrates a possible Strat combo for the week of 07/07/25 to 07/11/25.

The Strat method is very simple and can identify possible breakthrough points and potential targets areas. The method utilizes three price bar types: inside bars, outside bars and directional bars.

1. Inside bars = inside the previous bar and is price consolidation, neither side is in control.
2. Outside bars = takes out both sides of the previous bar.
3. Directional bars = one side is more aggressive, so bar takes out one side of the previous bar.

The method works on any time scale and there are 15 – Strat combos, one of the combos could happen next week.

During 07/07/25 to 07/11/25 a Strat signal happens if the SPX breaks its prior week low without moving above its prior week high.  The important support is at 6,174.97, a move below this level strongly implies the SPX could reach the next target near the prior outside bar bottom.

If SPX exceeds 5,943.23, the next target is the bottom area near 5,861.43. This zone could be powerful support, and the daily SPX chart explains why.  

The Volume Profile method places volume on a vertical axis matching price action with volume.  This helps to identify potential support/resistance areas.  The widest part of the Volume Profile is called “Point of Control” (POC) and represents the strongest zone of support/resistance.

POC is at 5,890 which is close to the second Strat target near 5,861.     

There’s also the factor of the still rising SPX – 200 – day Simple Moving average which is currently at 5,842 and could soon be around 5,890 to 5,861.

An SPX downside move to at least 5,890 to 5,861 could happen if next week SPX does not reach a new high and goes below 6,174.97.