The S&P 500 (SPX) will remain in focus on Thursday after the index staged an intraday reversal to close slightly lower today. This move followed the Federal Reserve’s decision to slash its benchmark 澳洲幸运5官方开奖结果体彩网:fed funds rate by 50 basis points, marking the 澳洲幸运5官方开奖结果体彩网:first rate cut since March 2020. 

Prior to Fed’s rate decision, the index had posted seven consecutive winning trading sessions as investors started pricing in the possibility of a 澳洲幸运5官方开奖结果体彩网:more aggressive half-point cut after econ🥂o📖mic data over the past month signaled a softening labor market and cooling inflation.

Below, we’ll take a closer look at the S&P 500’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to point out key levels worth watching out for.

Symmetrical Triangle Takes Shape

Since establishing a 澳洲幸运5官方开奖结果体彩网:record high in mid-July, the S&P 500 has oscillated within an orderly 澳洲幸运5官方开奖结果体彩网:symmetrical triangle, a chart pattern formed by trend lines connecting a series of sequentially lower peaks and higher troughs that typically precedes a breakout in price. 

However, Wednesday's intraday reversal created a bearish 澳洲幸运5官方开奖结果体彩网:shooting star near the triangle’s top trendline. A shooting star is a 澳洲幸运5官方开奖结果体彩网:candlestick pattern that forms when a security or index rises significantly, but eventually gives up those gains to close near the day’s opeജn.

The S&P 500 closed 0.29% lower at 5,618.2𝓀6 Wednesday.

Given those mixed signals, investo🤡rs should monitor💜 several important chart levels.

S&P 500 Downside Targets to Monitor

The first lower level to eye if a downside breakout takes place sits around 5,265. This location on the chart may provide support near a trendline that connects the March highs with comparable trading levels in May and early August. Depending on the timing of the move, this area may also closely align with the rising 澳洲幸运5官方开奖结果体彩网:200-day moving average.

A deeper retracement could see the index fall to the 4,950 level, a region that investors may perceive as a value buying area near a 澳洲幸运5官方开奖结果体彩网:horizontal line linking a range of price bars throughout January and February with the prominent April 澳洲幸运5官方开奖结果体彩网:swing low. Such a move would represent a 澳洲幸运5官方开奖结果体彩网:correction of about 12% from Wednesday’s close.

S&P 500 Upside Target to Watch

Given the index trades near its 澳洲幸运5官方开奖结果体彩网:all-time high (ATH), we can also forecas🌼t an u꧋pside target by using the measuring principle, also known as the measured move technique. 

To do this, we calculate the distance of the symmetrical triangle near its widest point and apply that amount to the pattern’s top trendline. For instance, here we add 650 to 5,650, which projects an upsid🍃e target of 6,300.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.