Strategists keep an eye on whether the S & P 500 can hold on to key levels

The S & P 500 is at a key technical level in the wake of Mr. Trump's tariffs, and could face a longer-term slump if it falls. In intraday trading on April 3, the S & P 500 was at a correction near 5,500. Technical analysts who watch moving averages and other indicators to determine market momentum point out that there are few points below this key psychological level that would attract buying on dips. "There is a whiff of panic in the air," said Jay Woods, chief global strategist at Freedom Capital Markets. "Trump and Treasury Secretary Vincent are trying to sell this trade war to Americans, but the stock market is not buying it. People are tired of this rhetoric, they don't see what tariffs can do other than potentially plunge the U.S. into recession, and are now rushing to get money out of the market. "