S&P 500 Rebounds Off Lows After Tariff Meltdown — But Is the Panic Over?

Summary:
• S&P 500 bounces off 4,782 after Trump tariffs spark sharp selloff. Bears still in control as resistance at 5,260 caps upside risk.

The S&P 500 Index (SPX) clawed back above 5,045 on Monday after briefly plunging to a low near 4,782, as traders digested the full impact of Trump’s aggressive tariff policy and China’s retaliatory response. The violent drop followed one of the steepest weekly losses since the pandemic-era selloff, igniting fears of a deeper correction across global markets.

While today’s bounce offers short-term relief, momentum remains heavily bearish, and the technical structure points to continued downside risk unless bulls reclaim key resistance levels quickly.

Trump Tariffs and China’s Retaliation Rock Global Markets

Last week’s 34% tariff hike on all Chinese imports by President Trump, followed by a mirror retaliation from Beijing, has reignited full-scale trade war fears. Markets are now pricing in:

• Prolonged inflation risk from cost-push pressures
• Potential Fed inaction or hawkish stance despite market fragility
• A pullback in corporate earnings tied to global trade disruption

The tech-heavy Nasdaq 100, small caps, and even crypto markets have mirrored the S&P 500’s decline, confirming that the panic is not sector-specific — it’s global and macro-driven.

S&P 500 Chart Analysis

The index hit a low of 4,781.79 earlier in the session but managed to rebound back above 5,045.30. However, the bounce remains fragile, and bulls are not out of the woods yet.

• Trend: Strong bearish breakdown from March consolidation
• Momentum: RSI at 22.66 – deeply oversold, but still no bullish divergence
• Immediate Resistance: 5,124.50 · 5,260.73
• Support Levels: 5,045.30 · 4,832.75 · 4,781.79
• Bias: Bearish unless price reclaims 5,260 on volume and holds above 5,124

Final Outlook for S&P 500: Cautious Rebound or Dead Cat Bounce?

The S&P 500 has found a temporary floor after a brutal selloff, but it’s far too early to call a bottom. With RSI stuck below 25, trend structure broken, and macro risks still evolving, traders should treat any bounce as corrective, not bullish.

Unless SPX clears 5,260, the broader picture remains one of weakness — with every rally potentially a trap.