Mapping the Market: S&P 500 lull likely a pause, not a cause for alarm

By Terence Gabriel

April 24 (Reuters) - The S&P 500 rally has cooled after a powerful run, but its broader uptrend should remain intact as long as it remains above important price levels.

The market is pausing after surging more than 13% to multiple records from the Iran-war low it struck in late March. The benchmark index is on track for its first weekly drop since late March and coincides with more geopolitical uncertainty and mixed earnings from major companies. However, price action indicates that investors are pausing for consideration rather than shifting to a state of alarm.

The key to this outlook would be whether the S&P 500 holds above what technical analysts call "support" - a price level, or zone, where buyers tend to appear in greater force than sellers. If the price holds above this area, which runs from 6,950 to 7,000, the index might regain upward momentum, but a clean break lower would signal a deeper pullback.

What the chart is showing:

• Support for the S&P 500 is around 6,950 to 7,000, a widely watched area that includes past highs and stands as a major psychological level.

• If the index turns higher, the next obstacles on the way up above Thursday's 7,148.78 high would be between 7,275 and 7,300, which is a technical resistance line - a point where technical analysts would expect sellers in greater numbers - that has limited gains since late 2024.

(Daily markets commentary from Reuters technical analysts on the signals financial charts are sending - and what they might mean.)