The S&P is near the 6,880.00 level as of this morning via futures trading, the index remains within its apex record levels and a high above 6,890.00 was seen several hours ago.
Bullish conditions continue to be the dominating factor for the S&P 500. After maintaining its record level values the past couple of weeks with rather choppy conditions prevailing, yesterday’s trading seemed to remove cautious sentiment and allowed for a strong gap higher. The S&P 500 closed around 6,795.00 on Friday. Monday’s opening exhibited value near 6,840.00 when it began trading.
Upwards momentum didn’t stop after the gap to open trading, the S&P 500 continued to find buyers. The record values on the index produced a steady stream of new apex highs. Early trading this morning has seen some of the bullish froth lessen, but the elevated ratios of the S&P 500 are clearly still within sight.
6,900.00 as a Target for the S&P 500
While the Nasdaq 100 received plenty of fanfare because of its rise, the S&P 500 was equally impressive regarding its ability to move higher yesterday. The 6,900.00 is likely being looked at as a target by larger financial players and it isn’t farfetched to believe there will be whispers of the 7,000.00 level which seems to be growing closer. Day traders should not reach for the stars however, they need to remain realistic regarding targets considering the amounts of leverage they are using and the potential of sudden reversals lower to cause harm.
The S&P 500 is within a solid bullish trend. The U.S government remains shuttered, but for the moment investors do not seem to be bothered by this fact. Instead last Friday’s rather polite inflation results via the CPI which came in below expectations helped ignite a belief the Federal Reserve will sound more dovish during its FOMC Statement on Wednesday. The Fed will cut interest rates by 25 basis points tomorrow and could suggest another cut will occur in December.
Looking for Higher Terrain as a Speculator
The S&P 500 is not a one way street. Day traders should not be fooled into thinking the index cannot turn lower. The jump higher via yesterday’s price action could run into the potential of profit taking.
Top Regulated Brokers
- Early futures trading this morning may be displaying some early selling because of large speculative positions being cashed in because of yesterday’s winnings.
- However, betting against the current upwards trend in the S&P 500 may remain counterproductive.
- Looking for additional upside by conservative day traders may remain the best wager.
- A conservative trader may want to wait for perceived support levels below to be tested and then look for movement higher.
- Sentiment on Wall Street produced lightning quick results yesterday that were exuberant, today’s market may not match that enthusiasm, but betting against the S&P 500’s bullish trend may not be correct.
S&P 500 Short-Term Outlook:
Current Resistance: 6,885.00
Current Support: 6,869.00
High Target: 6,935.00
Low Target: 6,850.00
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.