Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Continues to Look for its Next Move

[ad_1]

If the market were to break down, the 3900 level could offer significant support, and if it were to break down further, the 3800 level could become a critical level to watch as it was the scene of a significant swing low. 

  • The S&P 500 market experienced some initial selling during Thursday’s trading session, as futures traders sold off the contract.
  • However, as Americans returned to work on Wall Street, they began buying stocks, leading to a rally in both the futures market and the cash index.
  • Currently, the 50-Day EMA and the 200-Day EMA are offering a little resistance, and both are flat, suggesting that the market is consolidating and trying to figure out where to go next. After all, the biggest problem with Wall Street is there’s always some type of narrative that people are willing to follow.
  • I suspect we are formulating that at the moment.
Advertisement

The 4100 level above is likely to be significant resistance and will attract a lot of attention. If the market were to break above this level, then it could go looking to the 4200 level, but it would require significant momentum to make that happen. However, the market is likely to remain very noisy as investors try to figure out what will happen with interest rates, which seems to be the only game in town. While we have gone through another earnings season, most people haven’t paid too much attention to it. Instead, the focus is on Jerome Powell and whether he will continue to raise rates aggressively.

If the market were to break down, the 3900 level could offer significant support, and if it were to break down further, the 3800 level could become a critical level to watch as it was the scene of a significant swing low. Anything below there could lead to a significant drop in the market. However, the market is likely to continue to see a lot of back-and-forth noise in this overall range, so traders may be better off trading back-and-forth in some type of short-term range-bound trading system.

Overall, the S&P 500 market remains in a consolidation phase, with significant resistance at the 4100 level and support at the 3900 level. The 50-Day EMA and the 200-Day EMA are offering resistance, and the market is likely to remain noisy as investors continue to focus on interest rates. While the market may see some short-term movement, it is unlikely that there will be significant moves in the short term. Traders should approach the market with caution and focus on shorter time frames while keeping position size reasonable.

S&P 500

Ready to trade the S&P 500 Forex? We’ve shortlisted the best CFD brokers in the industry for you.

[ad_2]

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 - 2024 YourOwnBrokerage.com. All Rights Reserved.