US Session: Start in red and potential correction to $5.2K in SP500 Futures.

U.S. futures traded lower ahead of the start of the new week on Wall Street, tracking declines in Europe and Asia.
-Support for futures in the pre-market trade, with the initial decline partially reduced, which suggests that sentiment is cautious, and we do not have a switch in attitudes.
-The long-term bullish outlook is in effect after last week Wall Street reported its best week this year.
-Traders may take a defensive position, following another record high in the SP500, as GDP and PCE data from the US – key in determining expectations for the Fed – are expected at the end of this week.
-The tech sector is in focus today, following a report claiming China is trying to curb consumption of US-made chips. Intel and AMD retreat in premarket trading.

Indices in Europe retreated after the DAX hit a new ATH late last week, and the broad Stoxxx 600 posted nine straight weeks of gains, its longest winning streak in 12 years.
-Markets in Europe are catching the eyes of traders, especially after Goldman Sachs raised its 12m today. targets for the main indices of the old continent.

A mixed performance in Asia, where Japan and South Korea slipped, while China reported modest growth, supported by Beijing’s intentions to increase fiscal support.

Global sentiment shows a slight decline in risk appetite and increased caution among market participants at the beginning of the new week. The longer-term outlook is bullish, but futures are currently retreating, correcting the aggressive bullish momentum of recent sessions, pending the next potential growth catalyst / Thursday’s GDP data and Friday’s PCE release/ with the big moves expected on Thursday as Friday is off day in the USA.

IMPORTANT – Reduced trading week, as markets in Europe and the US will close on Thursday /Friday – holiday – Good Friday on the Catholic calendar/

THE TECHNICAL PICTURE BEFORE THE START OF THE WALL STREET SESSION
-The correction in the SP500 could deepen over the next two sessions, with the trade heading for validation of the bullish breakout at the $5,200 levels, which is also the first major support level for the price.
-The long-term picture remains bullish, but it is possible to see sideways trading in the first days of the week, given that we are immediately below the ATH levels.
-A successful hold above $5,200 in the current session will validate the breakout, and more aggressive traders will add to long positions.
-Alternatively: A break and close below $5,200 will accelerate selling pressure, with the next price support level in the area around $5,100