The S&P 500 (SPX) surged Tuesday morning, putting the benchmark in💟dex on track to snap a four-day losing streak.

The large-cap index rose as investors welcomed President Don♒ald Trump’s decision to delay t💖ariffs on imports from Europe that he’⛎d announced just a few days 🐎earlier. The S&P 500 was up 1% at 5,860 in the opening minutes of Tuesday's session.

The S&P 500 lost about a fifth of its value between mid-February and early April as investors assessed the impact of tariffs on economic growth and inflation. However, the index has recovered 20% from last month’s low amid growing 澳洲幸运5官方开奖结果体彩网:optimism about trade deals, the continued strength of the U.S. economy and generally strong corporate earnings.

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

200-Day Moving Average in Focus

Since hitting a 澳洲幸运5官方开奖结果体彩网:record high in mid-February, the S&P 500 trended sharply lower within a descending 澳洲幸运5官方开奖结果体彩网:broadening formation before breaking out above the pattern la🐼te last month.

More recently, the large cap index reclaimed the closely watched 澳洲幸运5官方开奖结果体彩网:200-day moving average (MA), but retraced back toward the indicator last week, a move that coincided with the 澳洲幸运5官方开奖结果体彩网:relative strength index retreating from its 澳洲幸运5官方开奖结果体彩网:overbought threshold.

Let’s identify crucial 澳洲幸运5官方开奖结果体彩网:support and resistance levels on the S&P 500’s chart.

Crucial Support Levels to Monitor

Further downside from current levels could see the index initially test support around 5,700. This area may attract buying interest near the top range of a brief 澳洲幸运5官方开奖结果体彩网:consolidation period earlier this m💯onth that closely aligns with several tro♉ughs that formed on the chart in October and November last year.

The bulls’ inability to defend this crucial 澳洲幸运5官方开奖结果体彩网:technical level could trigger a decline to 5,400. Those who 澳洲幸运5官方开奖结果体彩网:invest in the index may look for entry points in this area near a 澳洲幸运5官方开奖结果体彩网:horizontal line that links a series of corresponding 澳洲幸运5官方开奖结果体彩网:price action on the chart stretching back to last July.

Resistance Levels to Watch

A rally from the 200-day MA could propel a move toward the 6,100 level. The index may encounter overhead resistance in this location near several peaks that developed on the chart from December to February just below the 澳洲幸运5官方开奖结果体彩网:stock's all-time high (ATH).

Investors can project a resistance level to watch above the S&P 500’s ATH by using the 澳洲幸运5官方开奖结果体彩网:measuring principle, a ওtechnique that analyze🅘s chart pattern to forecast future price moves.

When applying the analysis to the index, we calculate the distance from the descending broadening formation’s low to high and add that amount to the pattern's breakout point. For 🌠instance, we add 1,200 to 5,450, which projects an upside target of 6,650, around 15% above Friღday’s close.

It’s worth noting this level also roughly sits in the same neighborhood as a bars pattern target that takes the index’s uptrend from late April to mid-May and overlays it from the low of last week’s pullback.

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