S&P 500 Correction Continues as Israel/Iran Conflict Escalates: What’s Next for Stocks?

New York, NY – Escalations in the Israel/Iran conflict have sparked concerns in the financial markets, particularly impacting the S&P500. The recent break of key support levels in the index has raised questions about the direction of the correction and potential future movements.

Analysts are closely monitoring the market indicators to determine the likely paths for the correction and where it may find support. Factors influencing the market include the ongoing geopolitical tensions, technical analysis, and major market drivers.

In the monthly chart, the S&P500 has shown signs of weakness as it traded below the March low and within the February range. Despite the bearish outlook, previous patterns suggest a potential bullish bias in the long term.

Moving to the weekly chart, the index experienced a sharp decline after a steady climb in previous months. The recent drop has reached key support levels, prompting speculation about further downside movements.

On a daily basis, the S&P500 closed lower consistently amid uncertainties surrounding the conflict and overall market sentiment. The futures collapse raised concerns, but the potential for a recovery in the coming week is being considered.

Market drivers and events, such as Fed Chair Powell’s comments on inflation and rates, technology sector performance, and upcoming economic data releases, are influencing market dynamics. Earnings reports from major companies like Netflix, Meta, Alphabet, Tesla, and Microsoft will also impact market movements in the following weeks.

As traders look ahead to the next week’s potential moves, key levels to watch include support at 4818 and resistance at 5108. With various factors at play, market participants are preparing for potential bounce-back opportunities amid the prevailing uncertainties in the financial markets.

Overall, the S&P500 is navigating through a challenging period marked by geopolitical tensions, economic uncertainties, and market fluctuations. Investors are advised to stay cautious and monitor the evolving situation closely for potential trading opportunities.