S&P 500: Don’t Buy the Dip Just Yet – Keep an Eye on These Levels for Next Move

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S&P 500: Don’t Buy the Dip Just Yet – Keep an Eye on These Levels for Next Move

• US stocks sold off once again on Thursday.
• The correction in the S&P 500 index appears to be gaining momentum.
• Meanwhile, the ******* DAX is moving sideways, and sellers could take over soon.
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U.S. stocks faced a broad selloff on Thursday, as the shed early gains in the trading session and tumbled deeper into a correction.

Investor anxiety ******** high, with the , also known as the “***** index”, spiking to its highest level since May.

This drop comes after the first leg of the pullback on Tuesday was seen as a rotation into small caps. However, even the declined on Thursday, reflecting a broader selloff in stocks.

This sentiment shift comes as the second-quarter earnings season heats up ahead of key tech names set to report next week.

Amid the ongoing correction, let’s take a look at the key levels to watch for the S&P 500 as the index tries to find a direction after declining 2 days in a row.

Alongside that, we will also take a look at the technical situation with the ******* index after ECB’s to hold rates steady at its latest meeting.

S&P 500: Key Levels to Watch as Index Faces Correction

The S&P 500 has finally entered a long-awaited correction, marking its biggest decline since April. This comes after a year dominated by bullish sentiment, with little opportunity for a significant pullback. The past two trading sessions saw the sharpest decline since April, suggesting the start of a potential correction.

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The first major area of concern ***** around 5500, where an upward trend line intersects with key support levels. A break below this critical zone at 5400 points could signal serious trouble for buyers and a potential trend reversal. In that scenario, sellers would likely target the 5000 level next.

DAX Could Face Selling Pressure

Since early May, the DAX has been stuck in a consolidation pattern, with its upper limit set near historical highs just below 19,000 points. Given the recent downturn in U.S. markets, a potential scenario for the DAX is a sell-off targeting the lower boundary around the round number of 18,000 points. This aligns with the current negative sentiment gripping the broader market.

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If sellers manage to break through this support level, their next target could be 1,000 points lower at 17,000. However, a reversal in sentiment and a continuation of the uptrend could see investors refocus on the psychological barrier of 20,000 points.

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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk ******** with the investor.

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