S&P 500 drop to key support area? callback for today?

On the macro front, the slowing labor market data has increased the likelihood of a rate cut. Currently, the market sees a 99.5% chance of a 50 basis point cut by the Fed in September. Some traders even believe there’s about a 60% chance of an emergency 25 basis point cut within the week.

Technically, S&P 500 index has already broken below the downtrend line, and dropped to a key support area with high volume. And the previous high double confirmed the strength of this support area.

Therefore, the price might get a short-term callback in this area today if it cannot be broken.

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