April 2 Chart of the Day - S&P 500
Tariff Shock Wave: Global markets just took a hit after new U.S. tariffs dropped.
Markets reacted fast—what's next for the S&P 500?
At the request of many loyal readers, this analysis will take a price action technical analysis perspective to identify key levels and evaluate potential next moves for S&P 500 futures (/ES).
When paired with high-performance mental strategies, this method offers a powerful blueprint for navigating any market environment, across all time frames.
The market’s initial reaction to the newly announced U.S. tariffs triggered a sharp global selloff. We waited until after regular trading hours to better assess the market's response and update relevant price levels accordingly.
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Monthly Chart
On the monthly chart we can see that since price set its 6166.50 all time high (ATH) just a couple of months ago price is fading back to the downside.
With little to no prior price history at or near ATHs, price often enters what we call a "discovery phase" to establish new market structure.
In this scenario, price seemingly sped through the discovery phase and quickly faded back down towards previous and familiar price structure bypassing previous support/resistant levels.
Volatility is a common price action behavior, though it tends to be unpopular among investors.
Weekly Chart
On the weekly chart we can see where price has made a series of lower highs and lower lows /aka/ a down trend the past several weeks.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional low to high and advanced high to high Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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