Finally unable to rise, where is the support level for the adjusting US stock market?

```

After nearly three months of strong rebound, the momentum of the US stock market has clearly exhausted, and the S&P 500 index is standing at a key technical crossroads.

On Tuesday, the S&P 500 index fell 1.4% to close at 7365.48 points, and the Nasdaq 100 plunged 3.3%, triggered by a massive sell-off in chip stocks. The market is questioning whether the AI-driven tech stock rally can continue. The VIX fear index surged above 20 intraday, a level often seen as a signal of rising market stress. Technical analysts are closely tracking several key support levels to determine the depth and boundaries of this correction.

According to Bloomberg, technical analysts are marking near-term to mid-term support zones distributed within about 1% to 6% below Tuesday’s S&P 500 closing price, meaning that the market may need to experience further downside before finding solid support.

Craig Johnson, Chief Market Technician at Piper Sandler, said, "After this round of rally, the market is losing momentum. If the index cannot quickly break to new highs, buyers on dips will be disappointed, and the rebound will be hard to sustain."

Near-term Support: 7340 and June Low at 7237

This correction was not completely unanticipated. Before Tuesday’s steep drop, the Nasdaq 100 had already soared more than 31% since March 30, with strong corporate earnings driving chip and AI stocks higher. The S&P 500 gained over 17% in nearly three months, with its market capitalization increasing by over $10 trillion.

Both technical and fundamental signals indicate that the uptrend has reached extremes. Piper Sandler, where Craig Johnson works, has advised clients to reduce exposure to highly valued tech stocks and increase allocation to value sectors such as financial and industrials. The strong rally in tech stocks has supported the overall market, but as their upward momentum stalls, the market becomes more dependent on sectors more sensitive to economic slowdown and weakening consumer confidence, exposing structural risks.

For short-term traders, the most watched near-term support levels are concentrated in two areas.

JC O'Hara, Chief Technical Strategist at Roth Capital Partners, pointed out that if the S&P 500 continues to trade below 7400, then around 7340 will provide effective support—the level highly coincides with the index’s 50-day moving average, only about 0.4% away from Tuesday’s closing price. "These technical levels overlap to offer buyers a solid entry opportunity," said O’Hara.

Mark Newton, Head of Technical Strategy at Fundstrat Global Advisors, is focusing on 7237.85—the intraday low on June 9. At that time, the June 5 jobs data release strengthened expectations for a Fed rate hike this year, triggering heavy selling in tech stocks and a shift to defensive sectors. Newton said, "I tend to be bullish and to use this pullback to add positions—the June low is a key defense line."

Mid-term Defense: The Multiple Significance of 7000 Points

If near-term supports fail, 7000 will become a crucial strategic support for bulls.

From a technical perspective, 7000 points has multiple meanings: First, it is the area where the S&P 500 set new highs in the first quarter, providing historical price memory; second, for traders using Fibonacci analysis, just below 7000 is the 50% retracement level of the move from the March intraday low to the June high, which O’Hara describes as "the market’s natural reset point under extraordinary selling pressure."

Notably, even if the index falls to 7000, trend-following quantitative funds (CTA) will retain a bullish stance on US stocks. UBS analysts Nicolas Le Roux and Maxwell Grinacoff note that CTAs may begin to shift from heavy long to light long positions around 7,000, but will remain bullish.

Newton further added that 6900 will provide longer-term support, a level that acted as resistance earlier this year, but the S&P 500 still has about 400 points of cushion above it.

For the Nasdaq 100 index, technical analysts have also outlined clear support levels. 29300 is the first key area, which has attracted dip buyers multiple times over the past month. Next is 28930, the intraday low after the June 5 jobs data release. If both these supports are breached, O’Hara will focus on around 28679—close to the Nasdaq 100’s 50-day moving average.

Market Breadth is Key to Whether the Rebound Can Continue

Technical analysts generally emphasize that the restoration of market breadth is crucial for judging whether this correction has ended and if the next rally can be sustained.

The core contradiction of the current market is that the S&P 500’s nearly 20% rise from the March low was mainly driven by a few soaring tech stocks, not a broad-based market rally. Once these leaders stall, the market lacks enough internal support.

"It feels like we’re walking on the edge of a cliff," said Craig Johnson. "Are we heading into a market bubble? About to break out to new highs? Or is the market topping and about to turn down? No one can be sure." This high uncertainty is precisely why technical analysis matters so much right now.

Risk Warning and DisclaimerThe market carries risk and investment should be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article fit their own circumstances. Investing based on this information is at your own risk. ```