Recent analysis of the S&P 500 Index (#SPX) indicates mixed signals regarding market direction. The index's Average Directional Index (DMI) is showing positive divergence, particularly as the index approaches recent lows. The Relative Strength Index (RSI) is also exhibiting notable positive divergence, a pattern last observed during the October 2023 lows. Additionally, the percentage of SPX members reaching four-week lows has been increasing since December 20, suggesting a potential recovery despite the index's recent performance. The Russell 2000 Index ($RUT) has experienced significant declines in December but is beginning to stabilize, showing signs of a double bottom with positive divergence at the 50% retracement level. Analysts are closely monitoring these developments, particularly in light of the index's proximity to its all-time high (ATH) and the potential implications for market trends moving forward.