Mapping the Market: S&P 500 pullback tests key support before next record push

The S&P 500 has retreated modestly from its most recent peaks and technical analysts will be watching to see if the pullback breaches key price levels to determine whether the benchmark index can make another run at record highs anytime soon.

The index, which edged up on Tuesday to end at 7,677.28, is within 1.6% of its August 13 record close of 7,798.99 and is only about 1.8% beneath its intraday peak of 7,816.70 reached the same day, according to data supplied by LSEG.

Despite its recent retreat, bulls remain focused on a key support zone between roughly 7,550 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.

Gann lines are a system of trendlines used to predict where support and resistance — basically where buyers or sellers gain the upper hand — will emerge over time. Intersections are often viewed as especially significant.

A Gann-line convergence near 7,560 is drawing particular attention, especially as this intersection 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 7,400, followed by the July low zone between 7,313 and 7,237. The rising 200-day moving average sits further below, near 7,105.

What the chart shows:

• S&P 500 trading within 2% of its August 13 record highs