The S&P 500, represented by the SPDR S&P 500 ETF Trust (SPY), experienced a significant decline, closing down 1.59% on May 21, 2025, after dropping 100 points. This drop follows a week of market volatility, with the index also declining by 0.34% on May 20. The broader market indices, including the Dow Jones Industrial Average (DJI) down 1.88%, the Nasdaq 100 (QQQ) down 1.40%, and the Russell 2000 (IWM) down 2.82% on May 21, also saw declines. Market sentiment indicators suggest growing caution among investors. The put/call ratio, which often precedes market pullbacks, has reached levels indicating potential for increased selling pressure in the coming weeks. This is coupled with a significant drop in net gamma exposure (GEX) for the S&P 500, falling 80% to $78 million on May 21, reflecting weakened dealer support and a shift towards a more defensive market stance. The SPY also fell by 0.6% earlier in the day. Technical analysis of the S&P 500 shows the index approaching key support levels. The 200-day simple moving average (SMA) around 5767 is a critical threshold to watch, as trading around this level could determine whether the recent market bounce is a continuation of the bull trend or a bear market rally. The index has been grinding higher off April lows, nearing the 5900 mark, but faces resistance at 6000. The 8-day EMA for SPY was at $586.19, and the 585 put wall level was tested, coinciding with the VIX expiration.