Waiting for the purchase of shares on a decline? Here is the level of the plan S&P 500 to see it

The S&P 500 ($ SpX) is located near its highest levels ever, but this does not mean that merchants should be blinded to these levels. Instead, John Roland, CMT, suggests monitoring the potential decline in his support – last Friday The market is near Livestream explained that the last GAP GAP area is the area it is watching for a short -term correction.

The gaps are formed when an index or stock jumps from the price level to another in the opening bell, leaving an empty space on the chart between the closure of the previous day. These empty sites often work as a magnet to make prices, as the markets return to “filling the gap” before resuming the direction. For merchants, gaps represent both risks and opportunity.

In the current preparation, the S&P 500 is still circulating within its upscale channel, but John indicates that if the index breaks the channel and decreases to less than 6200 – a major psychological and technical level – merchants should be prepared for deeper correction.

John highlights one gap in particular that the S&P can look forward to filling, the same gap that started this last gathering. This region is located between 6028 and 6,059 on S&P 500.

If the S&P 500 reconsidates this level, it will represent a decrease of about 8-8.5 % of the current prices.

This will be classified as a relatively simple correction, but it continues to be the type of retreat that can provide investors a much better entry point than chasing high levels at all.

• Do not chase its highest levels: If you have built positions earlier, this is the time to ride a trend, not add exposure.

• Watch 6200: The rest below indicates a deeper move towards the gap area.

• The main demand area: Between 6,028-16,059, where the gap support is in line with its highest levels ever.

• Correction capabilities: Almost 8 to 8.5 %, which is healthy in the context of the broader upward trend.

In the end, John Roland concludes: “I love gaps, and I will not be surprised if this market returns to that area. This is where I want to be a buyer.”