SP500 remains in a corrective phase, having reached a new low for March before stabilizing toward the end of the week. On the daily timeframe, prices appear to be in the late stages of a complex correction within wave four.
SP500 Daily Chart
Key support from November around 6500 is critical. A successful retest of this level could trigger a more substantial rebound. Conversely, if the index breaks below 6763, it would indicate that the higher-degree wave four is still extending lower, and the corrective move is not yet complete.
Traders should watch these levels closely on the daily chart for signals of a potential shift in trend.
Zooming into the 4-hour timeframe, the S&P 500 is trading within a well-defined downward channel. Short-term price action suggests momentum is still biased to the downside, but there are early signs of potential exhaustion near current support levels.
SP500 4H Chart
A breakout above the channel could signal the start of a short-term rebound, while a continuation lower would confirm that wave four is still unfolding. The 4-hour chart provides more precise entry and exit points for swing traders looking to take advantage of smaller moves within the broader corrective phase.
Conclusion:
Both daily and 4-hour charts highlight the importance of the 6500 support zone. While a rebound could be imminent, a break below 6763 would extend the corrective phase further. Traders should combine these timeframes to manage risk and identify potential opportunities.
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