As of January 3, 2025, the S&P 500 Index ($SPX) is experiencing volatility, with recent trading activity indicating a test of previous lows around $5832. Analysts have noted that a break below this level could lead to further declines, potentially reaching $5811 and $5800, with a gap fill target at $5783.44. The SPY ETF is also under scrutiny, having held around $586, with resistance noted at approximately $591.50. Recent trading suggests a possible flush towards lower levels, which could trigger increased market fear, but there remains a potential for a strong rally if gaps are filled in the coming days. The SPX futures are currently up by 23 points, and market participants are watching closely to see if the index can break above the key resistance level of $591, with significant support identified at $580.50. The market sentiment remains cautious as traders assess the potential for further movements in the wake of recent trends.