S&P 500 at a key resistance ahead of the US market open

After a brief moment of panic at yesterday’s market open, the S&P 500 turned around and started to erase the losses accrued since last Friday. There was no clear catalyst for the move other than the usual suspects like quarter-end flows.

Anyway, we got some positive news as Trump said overnight that he’s “going to be nice” on tariffs, adding that in some cases tariffs will be substantially lower. The news helped to turn the sentiment around with risk assets like stocks and bitcoin inching higher.

On the 1 chart, we can see that the S&P 500 pulled all the way back to the key resistance around the 5655 level where we can also find the trendline for confluence. The buyers will likely continue to pile in as long as the price stays above the resistance, while the sellers will want to see the price falling back below the key levels to start targeting new lows. The red lines define the average daily range for today.

The catalysts to look out for today include the US ISM Manufacturing PMI, the US Job Openings data and potential tariffs headlines.

This article was written by Giuseppe Dellamotta at www.forexlive.com.