S&P500 Closes with a Doji at Support

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The S&P500 is down over 5% for the week, with declines gaining momentum following the previous two weeks of subdued price action.

The declines also see the S&P500 retreating following a failure to rise back to the previous all-time highs near 3588.8.

The CBOE volatility index also closed higher on the week near 38.0, marking the highest level since April this year.

On the daily charts, price action has been closing flat for two consecutive sessions so far.

These doji candlesticks reflect the market uncertainty with a number of narratives in the fundamentals. The pullback on Friday coincides with the support area near the 3275 level.

Price needs to follow through to the upside here.

This will put 3388 as a likely resistance level that could be challenged.

The 50-day moving average sitting near this price level is also likely to add additional pressure. To the downside, a close below 3275 could trigger further declines down to the 3200 level of support next.

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