The S&P 500 has formed an uptrend channel after breaking out of the "tariff panic" downtrend, which had dragged the index down more than 10%. But is this new short-term uptrend merely a correction, or has the real direction changed? That’s the key question, one that will likely be answered in early April when the new tariffs take effect.
February consumer confidence data didn’t look promising, but much of the negativity had already been priced in during the earlier 10% sell-off. However, this week’s PCE report, combined with next week’s tariffs and jobs report, could become a catalyst for determining the short- to medium-term direction.
The 200-hour SMA has now reached the upper line of the trend channel. Together, they may create a strong resistance level. To the downside, 5700 is a key horizontal support level. By the end of this week, it will converge with the lower boundary of the channel, right as both the GDP and PCE data are released. Including the time factor, this confluence could mark the main short-term support.
As long as the trend channel holds, bulls remain in control.
February consumer confidence data didn’t look promising, but much of the negativity had already been priced in during the earlier 10% sell-off. However, this week’s PCE report, combined with next week’s tariffs and jobs report, could become a catalyst for determining the short- to medium-term direction.
The 200-hour SMA has now reached the upper line of the trend channel. Together, they may create a strong resistance level. To the downside, 5700 is a key horizontal support level. By the end of this week, it will converge with the lower boundary of the channel, right as both the GDP and PCE data are released. Including the time factor, this confluence could mark the main short-term support.
As long as the trend channel holds, bulls remain in control.
Trade active
Because of earlier then expected tariff news, S&P tested the 5700 support ahead of schedule. The main support is 5670-5700 zone. Bulls are now figting for keeping the control.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.