The S&P 500 (SPX) misplaced floor final week amid uncertainty concerning the impression of tariffs and rising issues the economic system might be headed towards a recession.

The index, which has misplaced floor in 5 of the final six weeks, may see heightened volatility this week with new tariffs expected on Wednesday, a day President Trump has known as “Liberation Day.”

The S&P 500 trades 9% under its record high set final month because the Trump administration’s on again, off again tariff policy has sparked issues that inflation may reignite and financial progress may stall. The benchmark index fell 2% on Friday to shut at 5,581.

Beneath, we take a more in-depth have a look at the S&P 500’s chart and apply technical analysis to establish essential ranges price watching out.

Flag Sample Breakdown

After falling under the intently watched 200-day moving average, the S&P 500 fashioned a flag within the second half of March earlier than breaking down under the sample in Friday’s buying and selling session, doubtlessly paving the best way for a continuation transfer decrease.

It’s additionally price declaring that the relative strength index did not climb again above the 50 threshold through the index’s current upswing, signaling underlying weak shopping for momentum.

Let’s establish a number of essential support and resistance ranges on the S&P 500’s chart that that traders could also be monitoring.

Essential Assist Ranges to Monitor

Additional downside this week may see the index initially decline to round 5,445. This location could present help close to the decrease vary of a consolidation interval that fashioned on the chart in June final yr, which intently aligns with troughs in July and September.

The bulls’ incapacity to defend this necessary technical degree units the stage for a potential drop to the 5,260 space. Those that invest in the index could search shopping for alternatives on this area close to final yr’s outstanding March peak, the Might pullback trough, and the early-August swing low. 

Apparently, this space additionally sits in the identical neighborhood as a projected bars sample goal that takes the index’s transfer decrease in October 2023 following a flag sample on the chart and overlays it from the present flag sample.

Key Resistance Ranges Value Watching

A restoration effort may see an preliminary upswing to round 5,875. The index finds a confluence of resistance at this degree close to the downward sloping 50-day MA and a trendline that connects a variety of comparable worth factors on the chart stretching again to the October peak.

Lastly, a breakout above this space may even see the S&P 500 climb to the 6,090 degree. Market watchers would doubtless scrutinize this area because it may present resistance close to a number of peaks on the chart positioned just under the index’s file excessive set final month.

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As of the date this text was written, the writer doesn’t personal any of the above securities.