The stock market has been in a steep downtrend, but the trend may be about to end, at least temporarily.
The SPDR S&P 500 ETF Trust (NYSE:SPY) is getting close to support. Support is a large group of investors who are looking to buy something at, or close to, the same price.
At support levels, there is more demand than there is supply. This is why market declines end when they reach them.
Sometimes a support level may remain intact for an extended period of time.
When the SPY fell levels around $430 in January, it found support and a rally followed. There’s a chance it happens again.
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