The S&P 500 experienced a decline dominated by selling throughout the session, with only a minor recovery before the close. This movement appeared to be a technical pullback, influenced by uncertainty leading up to April 2 and negative news regarding tariffs.
On the 4-hour chart, the market’s rebound, which began mid-month, is ongoing, marked by higher highs and higher lows. The latest pullback stopped at a trendline, where dip-buyers entered, aiming for a target of 5856, while sellers are looking for a break below the trendline to reach 5652.
### Market Uncertainty And Risk Management
In summary, uncertainty is expected to keep the markets cautious as the April 2 deadline approaches. Risk management suggests waiting to position until after the announcement on Wednesday.
The recent session saw persistent selling pressure, interrupted only by a modest recovery before the closing bell. This decline appears to be a standard technical pullback rather than the start of a larger downturn. With concerns building ahead of April 2 and heightened sensitivity to tariff-related developments, market sentiment remains fragile.
Looking at the 4-hour timeframe, the market’s climb from earlier in the month remains intact. So far, the pattern of rising highs and rising lows has not been broken, reinforcing the ongoing strength of this upward move. However, the latest retreat tested a key trendline, where buying interest re-emerged. Those stepping in at this level are aiming higher, with their sights on 5856. On the other side, those betting against the rally are watching closely for a decisive move beneath the trendline, which could send prices down to 5652.
### Importance Of Patience In Market Decisions
With uncertainty surrounding the early April event, caution is warranted. At times like these, closely monitoring price levels and key support zones becomes even more critical. Until the midweek decision is out of the way, patience remains an effective approach when deciding on positioning.
