TRADE SETUP

Where do we stand fundamentally?

On Thursday, April 3, the index experienced its worst single-day drop since 2020, falling approximately 4.8% and losing around $2.4 to $2.5 trillion in market value. This plunge was largely triggered by President Donald Trump’s announcement of sweeping new tariffs on nearly all U.S. imports, with rates ranging from a baseline of 10% to as high as 49% on goods from various countries. The move has sparked widespread fears of a global trade war, raising concerns about potential economic slowdown or recession.

SPX is reaching the support of 5350. This is now a strong uptrend continuation support with a strong fibo retracement 38.2% support as well. This can produce at least a temporary bounce if not a reversal upside.

Only in the case of a strong confirmed break below 5360 will lead to an immediate continuation extension lower without any possibility for a bounce.

_{I am taking a near-term long-trade entry with an SL below 5320 to target 5680. You can also trade it with options by buying call options.}