The S&P 500 operates in negative territory dragged by the fall in the manufacturing PMI

• The S&P begins the week with a marginal loss of 0.10% after the manufacturing PMI report.
• The ISM manufacturing PMI registers its lowest level in four months.
• The prices paid component decreased to 52.1 points in June from 57 registered in May.

The S&P 500 posted a daily high at the start of the European session at 5,480, finding sellers who led the index to set a daily low at 5,446. At the time of writing, the S&P 500 is trading at 5,455, losing 0.10% today.

ISM manufacturing PMI marks its lowest level in four months

The manufacturing index published by the Institute for Supply Management (ISM) stood at 48.5 in June, marking its third consecutive decline and reaching its lowest level in four months. This result represents a decrease of two-tenths, compared to 48.7 in May, disappointing the market consensus that expected an increase to 49.1.

The prices paid component fell to 52.1 in May from its previous reading of 57 in June, missing the 55.9 expected by analysts and reaching its lowest level in six months.

Technical levels in the S&P 500

The S&P 500 is in a short-term downtrend. We observe the first resistance at 5,470, given by the 13-period Exponential Moving Average. The second resistance is located at 5,490, in convergence with the 78.6% Fibonacci retracement. First support is at 5,420, June 17 low. Key medium-term support is at 5,390, given by the June 14 low.

S&P 500 1-hour chart