The S&P 500 Index is approaching all-time highs, but traders should watch for a potential pullback to support levels. Gaps on the chart often act as magnets for price action, representing both risk and opportunity. If the index breaks key level 6,200, a deeper correction could be on the horizon.

One specific gap on the S&P 500 between 6,028-6,059 could be filled, representing an 8-8.5% pullback. This correction could offer a better entry point for investors. Traders are advised not to chase all-time highs, but to watch for a move towards the gap zone.

For traders looking to refine their strategy, trading gaps can be essential. Barchart’s screeners for pre-market and post-market gappers can help spot and track these setups daily. John Rowland suggests being prepared to buy in the gap zone if the market pulls back.

Read more at Yahoo Finance: Waiting to Buy Stocks on a Dip? Here’s the S&P 500 Chart Level to Watch