The S&P500 has been retreating sharply for the past couple of weeks. Fro almost 2880, it fill to about 2530 before finding support.$SPX500 Daily Chart(click to enlarge)200-day SMA:- The daily chart shows that price found strong support at the 200-day simple moving average (SMA).- The RSI was also below 30, which is an oversold signal.- The thing is, even though there is support here at the 200-day SMA, the prevailing dip is still very sharp. - A couple of bounces during the week could simply be a dead-cat-bounce.- On the other hand, the fact that price ended the week on a good note is a welcoming sign for bulls.- We will have to build our analysis based on last week's range, between 2530 and 2720. - A close below 2530, or more clearly, below 2500 would be a very bearish sign. - A close above 2720, would be a very strong bullish sign.- If price holds within this range, we can say that the bears are taking a break. The overall trend would still be bullish, but the market would still be in consolidation.Support:- The weekly chart shows that the prevailing trend has been bullish.- If price breaks below 2500, the next support could be around 2400. - It would also be interesting if the RSI is close to 40. - If the overall trend is still bullish in the long-term, the RSI should hold above 40, and price should probably hold above 2400.- It might not be so much that price will dip sharply, and more likely that this will be a consolidation of significant time, like the one we had between January 2015 and August 2016, before the current bull run.- Indeed, we might be staying at levels around 2500 for the rest of the year. - But if price can hold above 2400 and the weekly RSI above 40, we might still have another run up like in October 2015 after price made a 3-week correction but the RSI bounced off of 40. SPX500 Weekly Chart(click to enlarge)