U.S. Bulls Take Charge: S&P 500 Set to Break OutHello,
๐ S&P 500 Market Outlook โ Pro-Bullish Perspective
๐ฅ Market Recap: The S&P 500 recently saw a significant dip, marking a 1-year low at 4805.92, largely attributed to the shockwaves caused by President Trumpโs sweeping tariff announcement on April 2. This move sent markets into a tailspin, creating heightened volatility levels not seen since the early pandemic days.
However, savvy traders recognized opportunity amidst the panic and entered strategic buy zones around those lows. Since then, the index has managed to stabilize above key technical levels, signaling potential bullish momentum building from the ground up.
๐งญ Current Key Technical Levels to Watch:
1W Pivot Point (PP): โ
Holding above 5224.13
1D Pivot Point (PP): โ ๏ธ Testing resistance at 5297.05
1M Strong Support/Resistance: โ Acting as resistance at 5329.31
๐ Bullish Confirmation Pathway:
To fully confirm a bottom-up bullish reversal, weโre looking for:
โ
Sustained close above the 1D PP @ 5297.05
โ
Break and hold above the 1M Resistance @ 5329.31
โ
Momentum toward the 1Y PP @ 5550.97
If these levels are conquered with conviction, it opens the door for an extended upside move toward 5878.58, aligning with a broader bullish sentiment.
๐ Cautionary Downside Scenario:
Although currently less likely, a failure to maintain support above the 1W PP @ 5224.13 could reopen downside risk in the short term. We remain watchful of that level as a bull-bear pivot.
๐ Macro Overview โ Tariff Shock & Earnings Spotlight:
Trumpโs abrupt tariff move has reshuffled the global economic deck, and investors are still processing its implications.
The S&P 500 is currently down ~14% from its February highs, but showing resilience.
Earnings season is now center stage, with major players like Tesla, Alphabet, IBM, and Boeing under the microscope.
โ ๏ธ Volatility Index (VIX) is down from post-tariff highs (~60) to ~30, still elevated from the long-term median of 17.6, signaling cautious optimism.
๐ฌ CEO Sentiment Matters:
As JJ Kinahan from IG North America noted:
โThe view of CEOs going forward has never been more important.โ
With traditional guidance uncertain, investors are leaning on transparent, scenario-based outlooks like United Airlinesโ โdual roadmapโ approach.
๐ Magnificent Seven on Watch:
Alphabet: -20% YTD
Tesla: -40% YTD
These leaders are key sentiment barometers. If they bounce, the broader market is likely to follow.
๐๏ธ Fed & Trump Tensions:
Trump recently stated that Fed Chair Jerome Powellโs termination โcannot come fast enough,โ pushing for rate cuts.
Powell, however, remains cautious, citing the need for more economic data before acting.
โ๏ธ Final Note โ A Cooling Tariff War?
๐ฌ According to Trumpโs latest statement, the tone around tariffs is beginning to cool, hinting at possible de-escalation.
This development adds further bullish tailwinds to the broader market outlook.
โ
Summary:
We are leaning bullish here with the base-building process in motion. Key levels are aligning, volatility is easing, and clarity from corporate earnings could be the catalyst to propel markets upward.
Watch for a clean breakout above 5329 โ thatโs where the real confirmation begins. Eyes on the prize: 5878.58 ๐๐
The Support and Resistance outlined in green and red are the respective support/resistance for this pair currently for 1M-1Y timeframes!
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