S&P 500 Teeters on Brink of Correction as Technicals Break Down
- Broad equities benchmark is down nearly 10% from July 31 peak
- Index has few support levels before March lows around 3,900
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The rout in US stocks has brought the S&P 500 Index to a crucial inflection point. It’s teetering near a correction after breaching 4,200 for the first time since May — a key technical level that may point to a longer-term selloff.
If the selling continues and the benchmark gauge for American equities stays below that psychological threshold, there are few levels to lure dip buyers, according to technical analysts, who monitor daily averages and other metrics to determine stock-market momentum.