Watch These S&P 500 Levels as Benchmark Stock Index Falls Into Correction | Global News Avenue

S&P 500 Index (SPX) Enter the correction Worried about Trump administration policies on Thursday, especially tariffcan slow economic growth and re-burn inflation.

Last month, Thursday’s decline put the index below its record high 10.1%, putting the benchmark at Technical correction – Since October 2023, it has been defined as a drop of more than 10% from the recent closing high.

To measure the indexes that may appear next, investors can turn to the past, since 2008, the S&P 500 has earned an average of 15.3% in a year after entering corrections, while returning 2.1% after three months and 4.9% after six months. Barron’s.

Below, we carefully study the S&P 500 standard card chart and use Technical Analysis Determine the key levels worth looking at after the index falls into the correction field.

Wyckoff Markdown stage

After setting a new record for the S&P 500 three weeks ago, it quickly turned upside down and established a Wyckoff Spring, a chart signal indicating the market top before the downgrade phase.

In fact, the index has dropped drastically since then, falling below the places of close attention 200-day moving average (MA) On the journey into the correction field.

this Relative Strength Index (RSI) Confirmed bearish momentum, the indicator recorded the lowest reading since September 2022. But, extreme Oversold Conditions also increase the possibility of rising price fluctuations.

Let’s determine the key Support and resist Investors may be paying attention to the level of the S&P 500 standard chart.

Key support levels to watch

The S&P 500 index fell 1.4% on Thursday to end the meeting at more than 5,521.

Moving from the current level may cause the index to re-examine 5,400 areas. This location may be supported near a trend line that connects a range of comparable Price action On the chart between June and September last year.

farther shortcoming Open the door and drop to around 5,265. Those people Investment Index Probably look for opportunities near this location Peaks and slots The chart developed on the chart from March to August last year.

Key resistance level monitoring

During the rising period, investors should closely monitor the 5,770 level. The index may encounter sales pressure in the region, near a series of similar price points for the peaks in September last year, which also roughly coincides with the upward 200-day MA.

Finally, recovery above this level could lead the S&P 500 to around 6,010. Overhead may be provided in the area Resist On the chart between November and February, link a series of highs and lows near the trend lines on the chart.

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