Summary of S&P 500 Analysis - February 2026

The article titled "Uptrend Defended as S&P 500 Targets Lower Highs," published on February 18, 2026, discusses the recent technical developments in the S&P 500 index. The analysis highlights a significant rebound in the index, characterized by a bullish candlestick formation known as a hammer or pin bar, which indicates a strong rejection of lower price levels.

Key Developments

On the previous trading day, the S&P 500 printed a clear hammer formation, suggesting a shift in control back to buyers. This formation occurred precisely on a long-term ascending trendline that connects major lows since 2025, indicating that the bounce is not random but a reaction from structural support. Such bullish rejections at long-term trendlines often signal potential reversal points in the market.

Current Market Sentiment

Following the hammer formation, the market has shown positive follow-through, with futures continuing to rise during the European trading session. This reinforces the notion that the hammer was not merely a one-off event but the start of a recovery attempt for the index.

Technical Analysis

From a technical standpoint, the next target for the S&P 500 is identified at the upper blue resistance line, which connects a series of lower highs established in 2026. This resistance line represents the current corrective ceiling within the broader uptrend. Given the strength of the recent bounce and the defense of long-term support, there is a significant probability that the index will reach this resistance zone.

Conclusion

Overall, the sentiment surrounding the S&P 500 remains positive. As long as the index maintains its position above the long-term trendline, the bullish outlook is expected to persist, with the path of least resistance pointing towards the 2026 lower-high resistance line.