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The S&P 500 is down around 10% in the past two months. This decline has made the word “correction” very popular recently.

This chart looks at the S&P 500 over the past decade.

Coming off the 2009 lows, the S&P 500 has remained inside of rising channel (A), for the past 5-years.

The decline over the past two months has taken the index down to parallel channel line (B). At the same time the S&P is testing rising support line (B) it is also testing two year channel support at (1).

Support line (B) has been in play since 2012 and right now, support is support until broken.

If support would not hold, then the next key test is rising channel line (B), which comes into play at the 1,800 level, around 4% below current prices.

So far the S&P has “bent, yet not broken” 4-year rising channel support!

The biggest concern for the S&P 500 would be a break of 4-year rising channel support at the 1,800 level, should it happen.