Overnight tariff threats to Mexico have resulted in the S&P 500 Index gapping down under 2770 heading into Friday’s session.
It will be interesting to see how investors react as this is the final trading day of the month.
S&P 500 Trading Outlook (3-5 Days):  Bearish. There are insufficient signs of bottoming just yet.
Thursday’s rally attempt failed to get over 2800 and then fell to unchanged.
The Subsequent volatility in the after-market on Trump tariff talks has resulted in further deterioration heading into May month-end.
The bottom line here: It still looks like weakness on the S&P 500 is possible down to 2722-36 area before lows are in.
There is no real support exists until we hit 2722-35. And it remains premature to try to buy dips given the ongoing poor structure and momentum. Thursday’s trading provided a good “tell” in that rallies failed 1 tick under the key 2800 level before pulling back to unchanged. Now post market close on Thursday, S&P 500 Futures have sold off under prior days lows with little to no real counter-trend exhaustion. I think it’s wise to hold off on getting too aggressive in trying to buy dips as additional downside still looks likely into next week.
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
