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The S&P 500 is retreating from its recent peak near 6,150 as investors turn cautious ahead of Nvidia’s earnings and softer economic data heightens expectations for Fed rate cuts.
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The index is currently testing key support near 6,000, a critical psychological level, with the 100-day SMA around 5,850 acting as a historically strong floor since late 2023.
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Traders are closely watching price action for bullish or bearish signals, as a rebound could push the index back toward record highs, while a breakdown may trigger a deeper pullback.
The S&P 500 pauses after hitting new record highs earlier this month.
The U.S. stock index is now approaching a key support zone, potentially attracting buyers in the broader uptrend.
What’s your take on the asset’s daily chart?
S&P 500 Index (SPX500): Daily
The S&P 500 is pulling back from its recent high near 6,150 as investor caution rises ahead of Nvidia’s earnings and softer economic data fuels expectations for quicker Fed rate cuts.
This dip appears to be a natural retracement within a broader uptrend, but the next move remains uncertain. Currently, the index hovers around 5,975, just below the key psychological level of 6,000.
Fundamental drivers remain crucial for market direction and volatility, so staying updated on economic events is essential. The 100-day SMA, positioned near 5,850, has consistently acted as a strong support level since November 2023, preventing deeper declines. Notably, it now aligns closely with the 6,000 mark and the daily Pivot Point at 5,981.
For bullish traders, signs of long wicks below the 100 SMA, bullish candlestick patterns, or steady movement above 6,000 could indicate renewed buying pressure, potentially sending the index back to its 6,150 peak or even new record highs.
Conversely, if bearish momentum builds and the index remains below the 100 SMA, a deeper correction could be in play. Initial support sits around 5,850, with a potential move toward 5,750, closer to the 200 SMA, if selling pressure intensifies.
Regardless of bias, maintaining strong risk management and staying informed on key market catalysts will be essential for navigating the next move in the S&P 500.
