S&P 500 increased by just 0.08% to close Friday's trade at 5,667 after a four-week decline. It is now down over 7% from February's peak of 6,147. The index has broken its bullish daily structure, signalling the start of a major correction. Critical support at 5,542 must hold to avoid further downside.
If support holds, a temporary rebound could reach targets of 5,662, 5,737, 5,858, and 5,932. Failure to maintain 5,542 would lead to the second stage, targeting 5,151. Given current economic pressures, a four-stage correction resembling past corrections is plausible, potentially reaching as low as 4,564.
If support holds, a temporary rebound could reach targets of 5,662, 5,737, 5,858, and 5,932. Failure to maintain 5,542 would lead to the second stage, targeting 5,151. Given current economic pressures, a four-stage correction resembling past corrections is plausible, potentially reaching as low as 4,564.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.