Six days ago, we noted that the Nasdaq 100 had entered a correction phase. Now, the S&P 500 (US SPX 500 mini on FXOpen) has followed suit, closing more than 10% below its 19 February peak on Thursday, officially confirming a correction.
Statistically, according to research by Yardeni Research:
→ Market corrections occur quite frequently—since 1929, the S&P 500 has experienced 56 corrections.
→ Only 22 of those corrections turned into bear markets, defined as a drop of 20% or more from recent record highs.
S&P 500 Analysis: How Long Could This Correction Last?
On one hand, Friday’s market rebound suggests that buyers are stepping in.
On the other hand:
→ US Treasury Secretary Scott Bessent stated on Sunday that there are “no guarantees” the world’s largest economy will avoid a recession. This came just a week after US President Donald Trump refused to rule out such a scenario.
→ The current correction has lasted 22 days so far, whereas historically, the average correction lasts 115 days and results in a 13.8% decline from the peak.
Technical Analysis of the S&P 500 (US SPX 500 mini on FXOpen)
The price is forming an upward channel around the median line, which alternates between acting as support and resistance (marked in blue).
→ Price action suggests that bulls are struggling to hold above the 6,100 level. In February, they failed to push towards the upper boundary of the channel.
→ Since the price has reached the lower boundary of the channel, there is a possibility that bearish momentum may start to weaken.
However, if the price loses support at the lower boundary of the channel, this would be a bearish signal from a technical perspective, indicating the potential for a deeper correction in the S&P 500 (US SPX 500 mini on FXOpen).
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