Superior broker technology provider since 2010
+1 (315) 675 1086 |

Continues to See a Sideways Drift

The lack of significant momentum necessitates caution and limited position sizes. 

  • The S&P 500 has maintained a relatively quiet trading range over the past 10 days. However, the market is experiencing a sense of hesitation as investors await a resolution on the United States Congress’ debt ceiling issue.
  • A potential default on American debt would cause significant chaos, although such an outcome appears unrealistic.
  • Eventually, a resolution will be reached, but the current market sentiment reflects nervousness as investors eagerly await clarity.


The 50-Day Exponential Moving Average (EMA) hovers just above the 4100 level, and the market had previously exhibited a massive megaphone pattern. However, this pattern will probably dissipate as the market currently trades in what can be described as a period of “nothingness.” Given this context, it is prudent to monitor the 50-Day EMA, followed by the 200-Day EMA beneath it, along with the key support level of 4000. On the upside, the 4200 level continues to act as resistance, and a breakthrough at that level would open the door to a potential move toward 4300.

The S&P 500 currently presents an attractive range-bound trading environment. However, it is important to note that the market is primarily conducive to day trading and navigating micro-movements. The lack of significant momentum hampers the market’s overall direction, requiring traders to exercise caution and limit their position sizes. Trading short-term charts and seeking decisive price movements becomes crucial in this context. While it may be challenging to establish substantial conviction and enter into large positions, this market offers potential opportunities for those inclined to capitalize on micro-movements. I am awaiting a clear and decisive movement before committing significant capital to this market.

TL;DR: the S&P 500 has recently maintained a relatively quiet trading range. However, hesitation prevails as investors eagerly await a resolution on the US Congress’ debt ceiling issue. The market sentiment reflects nervousness, and investors are eagerly seeking clarity. The 50-Day EMA, 200-Day EMA, and the key support level of 4000 are important areas to monitor. On the upside, resistance lies at the 4200 level, and a breakthrough would open the path toward 4300. The S&P 500 offers a range-bound trading environment, favoring day trading and capitalizing on micro-movements. The lack of significant momentum necessitates caution and limited position sizes. Waiting for decisive price movements becomes crucial before committing substantial capital to this market.

S&P 500

Ready to trade our daily Forex forecast? Here’s a list of some of the best online forex trading platforms to check out.

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.

RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2009 - 2023 All Rights Reserved.