Technical analyst pinpoints the critical S&P 500 support level both bulls and bears should be watching.
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00:00So looking ahead, what S&P 500 support levels should both bulls and bears keep an eye on?
00:05Well, I'm really looking at the 5500 level in the S&P 500.
00:08That is a level that we tagged about a week and a half ago, back in the early-mid part of March.
00:15We bounced off of it nicely for about six, seven days.
00:20And if we head back down to that level and we bounce up the 5500 level and start heading upward,
00:25that would be positive. That would be bullish.
00:27But if we break down below that 5500 level, there are lots of targets below that the S&P 500 could reach as an objective.
00:36We're talking about 5400, possibly even all the way down to 5100, which would be a sharp move down for the markets.
00:43It would not make anybody happy at all.
00:46But if we do happen to bounce off that 5500 level and move back up through that 5826 level,
00:53now I'm targeting that 5826 level as a 50% retracement from the all-time highs, which is about 6140 all the way down to the 5500 level.
01:0350% retracement level at that 5826 level is going to push the markets much higher,
01:12and I think we've got a shot to get back to those all-time highs.