The S&P500 yesterday had a rough day as it got hit by a wave of selling basically for the entire session with just a lil bounce before the market close. The move seemed more of a technical pullback caused by the underlying uncertainty ahead of April 2 rather than something else as we got the negative tariffs news late in the session.
On the 4 hour chart below, we can see that the rebound that started around mid-month is still on track with the market printing higher highs and higher lows. The pullback yesterday stalled around the trendline as the dip-buyers piled in with a defined risk below the trendline to target the 5856 leve next. The sellers, on the other hand, will want to see the price breaking below the trendline to extend the pullback into the 5652 level.
S&P 500 4 hour
Overall, the uncertainty will likely keep the markets at bay but more on the defensive side as we approach the April 2nd deadline. With Trump it’s hard to have conviction on anything, so from a risk management perspective, it would be better to just have some patience and start positioning after the Wednesday’s announcement.
