LIVE MARKETS-Bargain hunters step in as S&P 500 bulls look to defend the trend

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

BARGAIN HUNTERS STEP IN AS S&P 500 BULLS LOOK TO DEFEND THE TREND

Bargain hunters are stepping in Monday after last week's sharp selloff, with E-mini S&P 500 futures up more than 60 points, or 0.9%.

The S&P 500 index .SPX has now fallen for four straight weeks and just posted its biggest weekly loss since April 2025. Friday's close at 7,376.86 left the index down 5.7% from its October 6 record close and 6% below its record intraday high.

The damage has been more pronounced beneath the surface. The Nasdaq Composite .IXIC finished Friday down 10.9% from its early October record close, while the small-cap Russell 2000 .RUT ended 10.2% below its mid-August peak. A number of S&P 500 sectors, including energy .SPNY, industrials .SPLRCI, technology .SPLRCT, real estate .SPLRCR and communication services .SPLRCL, are in correction territory. Consumer discretionary .SPLRCD and utilities .SPLRCU were both already down more than 10% from their record finishes, while both real estate and communication services have already fallen more than 20% from their record highs.

With markets under pressure, traders are closely watching key support levels on the SPX.

Last Thursday's low of 7,350.35 brought the index within striking distance of its rising 200-day moving average, which ended Friday near 7,325. The benchmark has not closed below its 200-DMA since April 8.

Below that, a significant support zone sits between roughly 7,237 and 7,313. This area includes the June-July lows, a trendline from the April 2025 trough and the 38.2% Fibonacci retracement of the March-to-October 2026 rally, all clustering around 7,260.

If Monday's rebound gains traction, initial resistance appears in the 7,484-7,528 region. That zone includes the 23.6% Fibonacci retracement of the March-to-October advance and former support from the September and October lows.

Above that, the 100-day and 50-day moving averages, near 7,620 and 7,680, respectively, mark additional hurdles for the bulls.

(Terence Gabriel)

*****

EARLIER ON LIVE MARKETS:

HSBC SETS CAUTION ASIDE, SAYS TO BUY EQUITIES AGAIN CLICK HERE

THIS IS NOT LIKE THE DOTCOM BUBBLE CLICK HERE

SIGNS OF AI BENEFITS EMERGING ACROSS EUROPE INC CLICK HERE

BANKS, MINERS SUPPORT THE STOXX AS OIL FALLS CLICK HERE

BEFORE THE BELL: EUROPE FUTURES SOFT, NVIDIA DENTS TECH BOUNCE CLICK HERE

FRAGILE CALM AFTER AI WHIPLASH CLICK HERE