S&P 500 Faces a Make-or-Break Moment
- Benchmark index trades less than 40 points above its 200-DMA
- Technicals signal selling pressure hasn’t reached extremes yet
The index has stayed over that level for 137 sessions through Tuesday, the longest run since the post-pandemic surge in June 2020.
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Stocks are recovering mildly Wednesday, but if they fall much further technicals suggest bulls could be in for some serious pain in the weeks ahead before indexes ultimately stabilize.
The S&P 500 Index broke its bullish year-long uptrend this week, and now chart watchers say it needs to stay above its 200-day moving average, which currently sits around 4,204. Technical traders use that moving average to assess whether the longer-term trend is up or down.