S&P 500 Nears Key Technical Level as AI Doubts Pressure Stocks
Sevens Report’s Tyler Richey says a drop below 6,665 could mark “technical cracks” as AI optimism fades.
Stocks Face ‘Critical Tipping Point’ as Key Thresholds Tested
Doubts about whether billions poured into artificial intelligence will deliver returns — coupled with high stock valuations — sent the S&P 500 Index down to 6,720.32 on Thursday, its lowest level in two weeks. The 50-day moving average at 6,665 is emerging as a crucial support zone, according to Tyler Richey, technical analyst and editor of the Sevens Report. A break below that level could signal “technical cracks,” while a rebound above the 21-day moving average of 6,748.10 would likely restore risk-on momentum, Richey noted.
With government data stalled amid the shutdown and earnings season winding down, traders are leaning more heavily on chart patterns for clues. The S&P 500 has now logged three declines of at least 0.99% in the past six sessions and is down 2.5% from its last record as the Cboe Volatility Index climbs toward 20.
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