This U.S. equity index is in the course of a correction after its trend line breakdown.

Will this confluence of resistance levels be enough to maintain gains in check?

Here’s where sellers is perhaps trying to hop in.

S&P 500 Index (SPX500) 4-hour Chart by TradingView

It looks just like the tide is popping in favor of stock market bears!

The S&P 500 index recently tumbled below an ascending trend line that’s been holding since October last 12 months, which suggest that a downtrend could follow.

Nonetheless, technical indicators are still pointing to the presence of bullish vibes, so a pullback is perhaps needed to draw more sellers.

As you may see from the 4-hour chart above, the 100 SMA is above the 200 SMA while Stochastic has room to move north before reflecting overbought conditions.

With that, the index could retreat to the previous trend line, which happens to coincide with a resistance zone and the 100 SMA dynamic inflection point.

To top it off, a short-term falling trend line connecting the highs since last month may additionally add one other upside barrier across the 4,000-4,050 area of interest.

By the looks of it, jitters about potential bank runs following the SVB collapse still haven’t completely faded. Although Treasury Secretary Yellen reassured that the banking system stays stable and that deposits are secure, investors still appear to be wary of potential liquidity issues down the road.

If this sort of sentiment keeps up, market participants might avoid riskier holdings like equities, possibly translating to a different week within the red for the stock market.

This content is strictly for informational purposes only and doesn’t constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to ensure you understand the risks involved.