S&P 500: Key level to watch

A monthly close below 1972 on the S&P 500 would be a warning that a failure in the long-term trend is imminent, says Andy Dodd, Head of Technical Research at Louis Capital Markets.

While Dodd says longer-term investors should be looking to buy the current pullback for as long as the trend remains intact, he is worried that a monthly close below 1971.4 would leave a bearish engulfing candle. If this were to happen, it would suggest the long-term trend is about to fail.

See report.