Watch VIX When Trying To Indentify Support On SP500

The stock market is in a pullback, now trading sideways and almost unchanged since November, when Trump won the US election. With the market now erasing all those gains, it could become easier for the S&P 500 to find new stabilization.

So far, we are seeing a sharp retracement, but this looks like it could be wave C of a potential flat correction within wave 4, meaning we are trading near key support levels. Additionally, the VIX (fear index) is rising, and historically, when it moved above 24, the S&P 500 often found a bottom.

I wouldn’t be surprised if markets stabilize in the next few weeks and potentially turn higher. Major support levels for the S&P 500 are at 5800, followed by 5700.

Based on seasonals, the second half of March can be bullish for stocks.

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