S&P 500 Nears Technical Breakdown, But Don't Sell Yet: Analyst Sees Potential Rebound if Rates Stabilize

The S&P 500 is near a technical breakdown below the key 4,180 support level, according to Katie Stockton of Fairlead Strategies.

Stockton says not to sell yet, as oversold indicators suggest a rebound could happen soon.

If 4,180 decisively breaks, the next support level Stockton is watching is 3,920, about 6% below current levels.

Stockton wants to see a consolidation in interest rates to shift sentiment and allow a stock rebound.

The VIX shows high fear, so a reversal in stocks could be abrupt once rates stabilize, per Stockton's analysis.