The S&P 500 (SPX) s♋urged Tuesday morning, putting the benchmark index on track to snap a four-day losing streak.

The large-cap index rose as investors welcomed President 🍌Donald Trump’s decision to delay tariffs on imports froཧm Europe that he’d announced just a few days earlier. The S&P 500 was up 1% at 5,860 in the opening minutes of Tuesday'sꦫ session.

The S&P 500 lost about a fifth of its value between mid-February and early April as investors assessed the impact of tariffs on economic growth and inflation. However, the index has recovered 20% from last month’s low amid growing 澳洲幸运5开奖号码历史查询:optimism about trade deals, the continued strength of the U.S. economy and generally strong corporate earnings.

Below, we take a closer look at the S&P 500’s chart and apply 澳洲幸运5开奖号码历史查询:technical analysis to identiꦯfy price levels worth watching out for.

200-Day Moving Average in Focus

Since hitting a 澳洲幸运5开奖号码历史查询:record high in mid-February, the S&P 500 trended sharply lower within a descending 澳洲幸运5开奖号码历史查询:broadening formation beforeꦐ breaking out above the pattern late last💛 month.

More recently, the large cap index reclaimed the closely watched 澳洲幸运5开奖号码历史查询:200-day moving average (MA), but retraced back toward the indicator last week, a move that coincided with the 澳洲幸运5开奖号码历史查询:relative strength index retreating from its 澳洲幸运5开奖号码历史查询:overbought threshold.

Let’s identify crucial 澳洲幸运5开奖号码历史查询:support and resistance levels on the S&P 500’s chart.

Crucial Support Levels to Monitor

Further downside from current levels could see the index initially test support around 5,700. This area may attract buying interest near the top range of a brief 澳洲幸运5开奖号码历史查询:consolidation period earl♊ier this month that closely aligns with several troughs that formed on the chart in Oc♎tober and November last year.

The bulls’ inability to defend this crucial 澳洲幸运5开奖号码历史查询:technical level could trigger a decline to 5,400. Those who 澳洲幸运5开奖号码历史查询:invest in the index may look for entry points in this area near a 澳洲幸运5开奖号码历史查询:horizontal line that links a series of corresponding 澳洲幸运5开奖号码历史查询:price action on the chart stretching back to last July.

Resistance Levels to Watch

A rally from the 200-day MA could propel a move toward the 6,100 level. The index may encounter overhead resistance in this location near several peaks that developed on the chart from December to February just below the 澳洲幸运5开奖号码历史查询:stock's all-time high (ATH).

Investors can project a resistance level to watch above the S&P 500’s ATH by using the 澳洲幸运5开奖号码历史查询:measuring principle, a technique that analyzes chart pattern to forecast future pric🃏e moves.

When applying the analysis to the index, we calculate the distance from the descending broadening formation’s low to high and add that amount to the pattern's breakout po✨int. For instance, we add 1,200 t൲o 5,450, which projects an upside target of 6,650, around 15% above Friday’s close.

It’s worth noting this level also roughly sits in the same neighborhood as a bars pattern target that takes the index’s uptrend from late April to mid-May and overlays it from the low of last week’s pullback.

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As of the date this article was written, the author does not own any of the above securities.