S&P 500 shows a decline after the US Services PMI miss

[Redator]

Markets just received the report for the monthly ISM Services PMI report, and despite a beat on the Global PMI report (55.1 vs 54.6 expected – less Market-moving), the more influent Services data missed by a decent margin.

The data came in at 50.1, just at the brink of contraction territory and with the 51.5 consensus, Equity markets have started to show some signs of retraction.

Reactions also point to some selling in the US Dollar after temporarily breaching the 99.00 handle – The DXY now trades back into the high 98.00 territory.

We'll be taking a look at S&P 500 charts to see what's into play as the US Dollar and US Equity correlation is growing again.

Read More: Gold close to $3,400 maintains a picture of hesitancy in risk-assets

US ISM Services PMI report

US Services PMI and its components, August 5, 2025 – Source: InvestingLive.com

7 out of the 10 components influencing the main release have fallen in the monthly report, further confirming that Tariffs are starting to have an impact on American activity.

Tariffs have by the way seen quite a few mentions in today's report, on 9 different occasions. Central Banks will be looking mostly at the impact of tariffs on Prices;

Different sectors including Healthcare, Agriculture, education and transporting have mentioned that "Tariffs are now starting to show up in pricing, and we are seeing increases across the board.”

You can access this morning's report right here.

S&P 500 4H Chart

S&P 500 4H Chart, August 5, 2025 – Source: TradingView

Despite showing a strong pullback higher, US Equities are starting to form some lower highs on higher timeframes.

Looking at the bigger picture, the price action had been evolving in two different upward channels:

• The first being the April Liberation Day tariff lows, now broken after forming a double top (see on chart: Lower Bound trendline in black)
• The second (in Blue), still valid, has shown a rebound at the lows of its own lower bound, supported by the 4H MA 200 – The NFP lows are at 6,216 on the S&P CFD.

Sellers are stepping in after the missed PMI report and prices are now entering the key 6,300 Support Zone.

S&P 500 30m Chart

S&P 500 30m Chart, August 5, 2025 – Source: TradingView

Looking closer, the ongoing selling is strong with prices moving below the 50 and 200 MAs.

RSI momentum is getting oversold on lower timeframes, therefore reactions around the 6,300 psychological handle will be essential to monitor – down close to 0.50% on the session, we are currently trading in this region.

Key levels to place on your charts:

• 6,441 ATH on CFD (6,427 on SPX Index)
• FOMC Lows resistance Zone 6,350
• 6,300 Key Support – Current Pivot (+/- 15 points)
• NFP Lows and lower bound of May Channel – 6,220 to 6,240

Safe Trades!

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