S&P 500 Long-Term Uptrend Due for Pause, Says Fairlead's Katie Stockton

Market Correction and Oversold Bounce

• 📉 The market is currently in a B-wave corrective phase, interrupting the correction rather than marking its end.
• 💡 A short-term oversold bounce is occurring, reacting to conditions near support levels.
• ⚠️ A significant loss of intermediate-term momentum is evident on weekly charts.

Key Support and Resistance Levels

• 📌 The S&P 500 is being watched around 50-day moving average support, currently near 6550.
• 🎯 Below this cloud-based support, the next significant support level is approximately 6-7% lower.
• 📈 Resistance is noted around 6910, with a decisive breakout above this level being a bullish development.

Outlook and Investor Recommendations

• 📊 There is a better chance of a lower high being formed compared to the recent peak.
• ⚠️ Investors are advised to use this relief rally to reduce high-beta stock exposure.
• ⚡ Stocks showing a loss of momentum, indicated by the 20-day moving average rolling over, suggest a period to lessen exposure.
• ✅ The long-term setup remains bullish, but confirmation is needed for new highs.