STOCKS | S&P 500 Futures Face a Tough Week as Market Sentiment Weakens

S&P 500 futures appear set to test equity bulls' resolve before the U.S. cash market opens on Monday evening. According to Sina Finance, liquidity may be thin in the week before the Labor Day holiday, as many fund managers have not yet returned from summer vacation. The U.S. jobs report on Friday is also drawing attention after Fed Chair Kevin Warsh's Jackson Hole remarks shocked the U.S. Treasury market. Unless global equity sentiment improves quickly, S&P 500 futures may soon retest last week's low, which is becoming a key turning point for the short-term trend. If that level breaks before the cash stock market opens, selling pressure could accelerate. Seasonal factors offer little comfort, as September has averaged the weakest month for S&P 500 futures over the past decade. Open interest remains near recent highs even though futures prices hit an August high two weeks ago, which could add to downside pressure. With London markets closed for a local holiday, U.S. traders may also watch negative signals from Asia more closely.