Live Markets-S&P 500 bulls focus on key support zone ahead of catalyst-heavy week
SPY•Key support and resistance levels in focus
Despite last week's retreat, bulls remain focused on a key support zone between roughly 7,540 and 7,620. The area includes the June 2 high, the mid-June and mid-July highs, the intersection of two weekly Gann lines and the rising 50-day moving average. The Gann-line convergence near 7,560 is drawing particular attention. Gann lines are used to identify potential support, resistance and turning points, while intersections are often viewed as especially significant. In this case, the convergence adds weight to an important support area.
With several technical markers clustered in the same area, many traders expect buyers to emerge if weakness persists.
On the upside, a move above the record intraday high of 7,816.70 could put the 8,000-8,075 area into focus.
If support breaks, the next notable magnet is the rising 100-day moving average near 7,380, followed by the July low zone between 7,313 and 7,237. The rising 200-day moving average sits further below, near 7,100.
S&P 500 bulls focus on key support zone ahead of catalyst-heavy week
The S&P 500 finished Friday up 0.4% at 7,674.37, though it still lost 1.4% for the week, snapping a three-week winning streak. Even so, the pullback remains modest. The index is only 1.6% below its August 13 record close of 7,798.99 and 1.8% beneath its intraday peak of 7,816.70 reached the same day.
Investors now face a potentially pivotal week, with August PCE data due before Wednesday's open, Nvidia's earnings after the close that day and the Federal Reserve's Jackson Hole Symposium beginning Thursday.
E-mini S&P 500 futures are down about 0.2% on Monday, pointing to a slightly weaker open.
