S&P 500 May Fall Below 6,350 Level… Q4 Earnings Expected to Grow 28.4%

S&P 500 faces a potential drop below the 6,350 level after TradingShot identified a bearish divergence on October 30, with the index making higher highs since May 26 while the weekly RSI formed lower highs. The weekly RSI, which reflects longer-term momentum than daily indicators, weakening while prices rise suggests fading upward momentum, though the pattern alone cannot pinpoint the timing or magnitude of any decline. TradingShot notes this setup has occurred twice since the March 2020 low, with prior instances followed by significant corrections. The analysis comes as Q4 earnings are projected to grow 28.4%, creating a tension between deteriorating technical momentum and strong fundamental expectations. Investors should watch whether the index holds the 6,350 support level and whether the weekly RSI confirms further momentum loss in coming sessions.