Take a look at the potential pullback levels I’m watching on the 4-hour time frame.

However, a slew of downbeat earnings reports plus a somewhat hawkish FOMC statement this week triggered a flight to safety and profit-taking from recent equity rallies.

Thanks to the tech sector rally a few days back, the S&P 500 index managed to bust through the resistance around 4,800!

Don’t forget that Uncle Sam still has the January NFP report up for release, and any major surprises could boost volatility across asset classes!

This faster-moving SMA is still above the 200 SMA to suggest that the uptrend is more likely to gain traction than to reverse. The line in the sand for a correction might be the 61.8% Fib close to S3 (4,788.31) and the rising trend line, as well as the former resistance that might hold as support.

As it turns out, the Fed isn’t exactly eager to cut interest rates in March just yet, reinforcing the “higher for longer” narrative that is keeping market players on edge given slowing global growth conditions.

After breaking out of its range, this equity index is finally showing signs of a correction.