US100 Opens the Week with Cautious Optimism After Trade TensionsUS100 – 4H Technical Zone Analysis
Zone 1: All-Time High
This level represents the current top of the market and a heavy supply region. Until price closes decisively above this range with volume confirmation, it remains a key ceiling. Any push into this zone is high-risk for longs and ideal for short-term fade setups or liquidity hunts.
Zone 2: Pre-Breakout Resistance
This is the immediate resistance just below the all-time high. While a breakout through this zone may appear bullish on lower timeframes, traders should exercise caution. The proximity of the all-time-high resistance above significantly reduces reward-to-risk for fresh longs, price can easily reject from the upper zone and reverse quickly. A cleaner confirmation would require acceptance above both Zone 2 and Zone 1 before considering continuation trades.
Zone 3: Key Demand
This demand zone remains the foundation of the current bullish structure. It marks the origin of the recent rally and continues to attract responsive buyers on dips. As long as price holds above this level, the broader bias stays constructive. A clean break below would, however, shift short-term sentiment bearish and open the door for a deeper correction.
Market Sentiment: Cautious Optimism
After a volatile end to last week, US100 is starting the new week with a tone of cautious optimism. On Friday, renewed tension between the US and China rattled markets, as Washington floated new tariffs and export restrictions while Beijing hinted at countermeasures. However, over the weekend the tone softened, US officials signaled that they did not intend to escalate the trade conflict further, which helped calm investor nerves and lifted sentiment in global markets, particularly in Asia.
Today, the index is trading slightly higher, supported by renewed risk appetite and continued strength in tech and AI-related stocks. Still, confidence remains fragile. Oil prices have weakened, raising questions about global growth, and the ongoing US government shutdown continues to delay key economic data releases. With limited visibility into real fundamentals, investors are largely trading on headlines and policy expectations.
Overall, sentiment around the US100 is positive but delicate, the market is recovering from last week’s uncertainty, yet it remains highly sensitive to any renewed trade tension or negative macro surprises.
