S&P 500 futures are poised to test the resolve of equity bulls ahead of the US cash market opening later on Monday. With the Labor Day holiday week underway and many fund managers still away on summer break, market liquidity is likely to remain thin.

The upcoming US jobs report on Friday has taken on added significance following Federal Reserve Chair Kevin Warsh's remarks at Jackson Hole, which rattled the US Treasury market. Unless global equity sentiment improves rapidly, S&P 500 futures contracts may soon retest last week's lows, a level that is increasingly becoming a critical inflection point for short-term direction. A break below this level before the cash market opens could accelerate selling momentum.

Seasonal factors offer little comfort, as September has historically been the worst month for S&P 500 futures performance over the past decade. Positioning dynamics could also amplify downward pressure, with open interest remaining near recent highs even as futures prices hit an August peak two weeks ago.

With London markets closed for a local holiday and unable to fill the void, US traders may also pay closer attention to negative signals emanating from Asia.