S&P 500 Rebounds 2% After Entering Correction Territory, Analysts Watch for Emerging Buy Signal

The index remains 8.27% below its 52-week high, with bearish technical indicators persisting despite a slight recovery.

The S&P 500 rebounded 2% on Friday after falling into correction territory on Thursday, while the Nasdaq remains in correction territory.
As of Friday, the S&P 500 is 8.27% below its 52-week high, and the Nasdaq 100 is 11.33% below its 52-week high.
Technical analysis shows bearish trends for the S&P 500, including a drop below the 200-day moving average and poor momentum rankings across short, medium, and long-term metrics.
Jay Kaeppel’s Panic/Euphoria model suggests investors should begin monitoring for potential buy signals, with historical data indicating significant returns following excessive pessimism levels.
The S&P 500 has completed a double top pattern and fallen below its 13-, 26-, and 40-week moving averages for the first time since October 2023, signaling risks of deeper declines.