S&P index gaps above its 100 hour moving average and looks to test 38.2% retracement | Forexlive

The S&P 500 is trading sharply higher, up 83 points (+1.47%) to 5751, as the index tests and briefly moves above the 38.2% retracement of the decline from the February 19 high, which comes in at 5750.19. A sustained move above this level would mark a bullish technical shift.

Friday’s close held near the 100-hour moving average at 5666.99 (blue line on the chart above), but today’s open gapped well above that level, fueled by optimism around reduced tariff disruptions linked to President Trump’s so-called “Liberation Day” on April 2. While geopolitical rhetoric can shift quickly, markets are currently welcoming the prospect of fewer tariffs and the potential for reduced inflationary pressure.

The Nasdaq is also surging (see chart below), with price action gapping above its own 100-hour moving average at 17,787.30 (blue line on the chart below). However, it still has work to do, with the 38.2% retracement of the drop from the February 18 high sitting at 18,338.54. The next upside target comes in at the March 7 swing high of 18,243.58.