This U.S. fairness index is in the midst of a correction after its development line breakdown.

Will this confluence of resistance ranges be sufficient to maintain positive factors in examine?

Right here’s the place sellers may be seeking to hop in.

S&P 500 Index (SPX500) 4-hour Chart by TradingView

It appears just like the tide is popping in favor of inventory market bears!

The S&P 500 index just lately tumbled under an ascending development line that’s been holding since October final 12 months, which recommend {that a} downtrend might observe.

Nonetheless, technical indicators are nonetheless pointing to the presence of bullish vibes, so a pullback may be wanted to draw extra sellers.

As you may see from the 4-hour chart above, the 100 SMA is above the 200 SMA whereas Stochastic has room to move north earlier than reflecting overbought circumstances.

With that, the index might retreat to the previous development line, which occurs to coincide with a resistance zone and the 100 SMA dynamic inflection level.

To high it off, a short-term falling development line connecting the highs since final month may additionally add one other upside barrier across the 4,000-4,050 space of curiosity.

By the appears of it, jitters about potential financial institution runs following the SVB collapse nonetheless haven’t utterly pale. Though Treasury Secretary Yellen reassured that the banking system stays secure and that deposits are secure, buyers nonetheless appear to be cautious of potential liquidity points down the road.

If this sort of sentiment retains up, market contributors may keep away from riskier holdings like equities, presumably translating to a different week within the pink for the inventory market.

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