The S&P 500 (SPX) 澳洲幸运5官方开奖结果体彩网:entered a correction Thursday amid concerns that Trump administration policies, notably tariffs, could slow economic growth and reig🍌nite inflation.

Thursday’s decline places the index 10.1% below its record closing high set last month, putting the benchmark into a 澳洲幸运5官方开奖结果体彩网:technical correction — defined as a decline of more than 10% from the recent closing high — for the first time since Octob꧟er 2023.

To gauge where the index may be headed next, investors can turn to the past, Since 2008, the S&P 500 has averaged a gain of 15.3% one year after entering a correction, while returning 2.1% after three months and 4.9% after six months, according to Dow Jones Market Data cited by Barron’s.

Below, we take a closer look at the S&P 500 chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify crucial levels worth watching after the index's fall into correction territoryღ.

Wyckoff Markdown Phase

After the S&P 500 set a new record high three weeks ago, it promptly reversed, setting up a Wyckoff♔ Spring, a chart signal that indicates a market top before a markdown phase.

Indeed, the index has since trended sharply lower, falling below the closely watched 澳洲幸运5官方开奖结果体彩网:200-day moving average (MA) on its journey into correction territory. 

The 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) confirms bearish momentum, with the indicator registering its lowest reading since September 2022. However, extreme oversold conditions a✤lso raise the possibility 𒁏of upside price swings.

Let’s identify crucial 澳洲幸运5官方开奖结果体彩网:support and resistance leveꦡls on the S&P 500’s chart that 🦋investors may be eyeing.

Crucial Support Levels to Watch

The S&P 50🐼0 shed 1.4% on Thursday to close the session at just above 5,521.

A move lower from current levels could see the index revisit the 5,400 area. This location may provide support near a trendline that connects a range of comparable 澳洲幸运5官方开奖结果体彩网:price action on the😼 chart between June and September last year.

Further downside opens the door for a decline to around 5,265. Those who 澳洲幸运5官方开奖结果体彩网:invest in the index may look for buying opportunities in this location near several 澳洲幸运5官方开奖结果体彩网:peaks and troughs that developed on the cha🍒rt from March to August last year.

Key Resistance Levels to Monitor

During upswings, investors should closely monitor the 5,770 level. The index could run into selling pressure in this region 🌌near a series of similar price points on the chart stretching back to last year’s Sept🍃ember peak, an area that also roughly aligns with the upward sloping 200-day MA.

Finally, a recovery above this level could see the S&P 500 climb to around 6,010. This region may provide overhead 澳洲幸运5官方开奖结果体彩网:resistance near a trendline that links a series of highs and ꦐlows on the chart between November and February.

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