- S&P 500 and NASDAQ E-mini futures surge nearly 18% from April lows, reclaiming March levels ahead of a pivotal FOMC decision.
- Both indices break above key moving averages, signaling a potential trend shift despite heavy bearish sentiment in the broader market.
- Tight bid-ask spreads and synchronized gains suggest strong institutional support as traders prepare for possible policy-driven volatility.
According to analyst CRG, the S&P 500 and NASDAQ 100 E-mini futures posted strong gains ahead of a crucial FOMC week. Both indices extended their recovery from April lows, showing robust momentum as traders weigh sentiment and technical resistance. The S&P 500 E-mini climbed 1.52% to $5,709.00, while the NASDAQ 100 E-mini rose 1.63% to $20,195.25.
The recent uptrend brought both indices back near levels last seen in late March. Each contract posted consecutive green sessions, reflecting renewed buying pressure. The S&P and NASDAQ futures have now gained around 18% from their April lows. This recovery follows a steep March-April correction where both indices fell over 20% from their February highs.
Key Resistance Levels Breached
Moreover, both indices recently broke above a critical magenta moving average that previously acted as resistance. The S&P 500 E-mini cleared this level in early May after several failed attempts. Similarly, NASDAQ futures mirrored the move with synchronized strength. These breakouts could signal the start of a broader trend shift.
Besides, spreads remain tight, suggesting high liquidity and confidence among institutional traders. The S&P 500’s bid-ask sits at $5,710.25 and $5,711.00, while NASDAQ’s holds at $20,200.75 and $20,205.00. Consequently, price action continues to signal a steady, deliberate recovery rather than a speculative spike.
Sentiment Clashes With Technicals
However, despite the bullish breakout, sentiment remains deeply bearish. Many traders expect a pullback, citing overextension near key technical levels. Bearish positioning appears crowded, increasing the potential for a “max pain” rally if funds are forced to chase.
Additionally, the backdrop of the upcoming FOMC decision adds uncertainty. Traders now face a critical inflection point where monetary policy could shift the trend. Hence, the next move may not rely solely on technicals but also on forward guidance and macro outlook.
