LIVE MARKETS-S&P 500's 50-DMA poised to come under fire
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S&P 500'S 50-DMA POISED TO COME UNDER FIRE
U.S. equity index futures are under pressure on Tuesday, as U.S. traders returned from a long weekend to witness a rout in global markets after President Donald Trump renewed his tariff threats against Europe over control of Greenland.
Indeed, after coming within 0.2% of the 7,000 psychological barrier with its 6,986.33 record intraday high, the S&P 500 .SPX ended Friday at 6,940.01.
Now on Tuesday, with e-mini S&P 500 futures EScv1 sliding more than 1.5%, or about 110 points, traders are turning their attention to initial support levels from which the S&P 500 may attempt to mount a stand.
With the expected opening weakness, the benchmark index appears poised to test its rising 50-day moving average (DMA), which ended Friday at about 6,830. The index's January 2 low was at 6,824.31.
The rising 100-DMA, which essentially contained weakness in May and November of last year, ended Friday just over 6,742. The December 17 low was at 6,720.43.
Since May 9 of last year, the S&P 500 has seen just one close below its 100-DMA. On November 20, the index ended at 6,538.76, which was less than 6 points below its 100-DMA, which ended at 6,544.39 on that day. That marked the low close in the 5.2% sell-off from the then October 28 record closing high.
Another decline to the 100-DMA would put the SPX down just over 3% from its 6,977.27 January 12 record closing high.
In the event the index tests its 50-DMA and attempts to mount a reversal, the January 14 low, which was at 6,885.74, will then be an initial hurdle.
(Terence Gabriel)
EARLIER ON LIVE MARKETS:
EUROPE'S NEW TARIFF FIGHT CLICK HERE
TARIFF RISKS TEST EUROPE'S RALLY, BUT MS SEES RICH PICKINGS CLICK HERE
DON'T FORGET ABOUT FRANCE CLICK HERE
STOXX HITS 2-WEEK LOW AS VOLATILITY JUMPS CLICK HERE
BEFORE THE BELL: EU FUTURES DIP, FRENCH DRINK MAKERS EYED CLICK HERE
SELL AMERICA, SELL JAPAN CLICK HERE
SP500Levels01202026 
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