S&P 500 Pulls Back From Record Highs. Is More Weakness Ahead?S&P 500SPCFD:SPXNaranjCapitalThe S&P 500 is still close to record levels, but the mood on Wall Street has changed. After three consecutive weeks of gains, the index finally pulled back last week. It closed Friday at 7,674, up 0.43% on the day, but still ended the week lower overall. The Nasdaq fell around 2%, while semiconductor stocks dropped more than 4%. So, what changed? The problem is no longer just stocks The biggest pressure is coming from the bond market. Treasury yields continued to rise, with the 30-year yield reaching its highest level in nearly two decades. At the same time, higher oil prices amid rising tensions around Iran are adding another layer of uncertainty. Why does this matter? Higher oil prices can push inflation higher. And if inflation stays elevated, interest rates could remain higher for longer. That can put pressure on stocks, particularly technology and growth companies. For now, the S&P 500 is about 1.6% below its record close of 7,798.99. So the bigger question is: Is this just a healthy pause, or the beginning of a deeper correction? The chart gives us two important levels The first support zone is: 🔹 7,550–7,600 If buyers defend this area, the recent pullback could remain relatively contained. But if this zone breaks, the next important support comes around: 🔹 7,250–7,300 That would signal a deeper correction and a bigger change in short-term sentiment. One sector is standing out While most areas of the market have come under pressure, Healthcare S5HLTH is currently outperforming the broader market. This makes sector performance worth watching as investors become more selective. And then comes Jackson Hole Markets will be closely watching Kevin Warsh’s speech at the Jackson Hole economic symposium on Friday. Investors will be looking for clues on how policymakers view inflation, economic growth and the future path of interest rates. There may not be any major policy announcement, but even a small change in the tone around rates could move markets. What should investors watch this week? Three things matter most: Oil prices. Treasury yields. The 7,550–7,600 support zone. The long-term picture has not changed dramatically. But after a powerful rally and a record high, the market may need to prove that buyers are still willing to step in. If 7,600 holds, the pullback could remain a pause. If 7,600 breaks, 7,250–7,300 comes into focus. The next move may depend less on the record high itself and more on how the market reacts around these support levels.