Chartology: Is the S&P Breaking Down?

When Will S&P be Broken?

Carter Worth, of Oppenheimer Asset Mgmt, explains whether today's selloff signals a further fall for the S&P.

Market technicians are keeping a close eye on a handful of S&P key levels. And how the market behaves at these key junctions could signal whether a serious correction is in the cards.

Here’s what chart watchers have on their radars

S&P 1344 - The Feb. 18th high

S&P 1331 – Minor trend line since March 16^th Tsunami-Gaddafi low.

S&P 1315 – Major trend line in effect since lows of late August 2010

S&P 1312.70 – April 19, 20 gap

We’ve broken most of these key levels but according to Oppenheimers Carter Worth don’t sweat it.

He says despite what may look and feel horrible “These are normal reference points and are healthy.” In fact, Worth thinks the market is “set up for nice strength.”

Instead of those levels listed above, Worth says the key level to watch is about 1280 on the S&P, the 150-day moving average. “That’s a major line in the sand,” he says.

But even if we test it, Worth thinks it holds. "More than likely we'd bounce," he says.

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