The S&P 500 index recently experienced its largest correction since autumn 2023, shedding 10.4% from February 19 to March 13 and hitting a low of 5,504—the lowest level since September 12, 2024. Now, the benchmark faces two possible scenarios: either a deeper decline towards the 5,000 support level or a sharp rebound.

Large investors appear to be betting on a recovery. The SPDR S&P 500 ETF Trust (SPY) recorded net inflows of $7.49 billion last week, following a massive $15.28 billion inflow two weeks ago. This suggests that institutional investors are actively buying the dip, reinforcing the potential for an upside move.

The index has already rebounded by 2.2% to 5,660 points, setting its sights on the 5,900–6,000 range. Given this trend, I will align with large investors by opening a long position at 5,570–5,670 points, with a stop-loss set at 5,280 points.