JStocks are sharply lower this morning after President Trump announced 10% tariffs on all imports effective on Apr. 5, as well as significantly higher import tax rates for specific countries like China (additional 34% tariff on top of previous duties). S&P 500 futures (/ES) were down about -3.5% in early trading, so traders may be wondering possible support levels on the S&P 500 ETF (SPY) when the market opens in light of this across-the-board plunge for equities.

The SPY is poised to open near 543, which is about -11.5% down from its all-time highs of 613.23. According to the yearly Volume Profile study, this downswing has taken price below the Point of Control (area of heaviest trading volume) near 569. It looked like price yesterday was making a move to retake another key volume node near 560, which happened to line up with the long-term 252-day Exponential Moving Average – but today’s move seems likely to be a bucket of cold water for a further rally.

This area around 543 is in the thick of another volume node, and also roughly near the -2 Standard Deviation Channel. This is suggestive of a relatively extreme downside move and a possible supportive area around 546 based on yesterday’s close. Beyond that, watch for more old lows around 540 for a further foothold.

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