The S&P 500 Index’s drop Tuesday to its lowest level in nearly five months could be a sign of better days ahead, according to JPMorgan Chase & Co. technical strategist Jason Hunter.

“The break to new correction lows puts the pieces in place for a bottom,” Hunter wrote in a note. “We expect any residual weakness to find buying interest below 2,700.”

The S&P 500 tumbled as much as 2.3 percent to 2,691.43 yesterday, its lowest intraday level since May 29, before rallying back to close down 0.6 percent at 2,740.69.

Hunter still expects a fourth-quarter rally that could reach new cycle highs into early 2019.

Dennis Gartman, publisher of The Gartman Letter, also sees the 2,700 level as key for the S&P 500. He believes it is support “for now,” though questions whether that can last. But he thinks a bounce back toward the 2,820-2,850 range is “reasonable.”

“The S&P 500 Index break to a new correction low and test of the 2,674-2,693 support zone triggered bullish momentum divergence signals on the intraday time frames,” JPMorgan’s Hunter wrote.

“A move through 2,755-2,768 resistance would confirm a short-term trend reversal and turn our attention to the 2,816-2,826 and 2,865 resistance layers.”