Day trading is not easy and the S&P 500 continues to challenge those who allow emotions to get in the way of their decisions. The S&P 500 has reestablished its apex realm in early trading this morning as it moves near 7,135.00 with slight gains being seen via futures. Yesterday’s Monday opening was greeted with caution and the S&P 500 fell to a low around 7,058.00 with a lightning spike downwards, but quickly reversed.
Not only did the index reverse but it began to sustain buying and gain. Yesterday’s close via the S&P 500 was around 7,109.00. Financial institutions are displaying fortitude as they buy the index even as shadows certainly lurk regarding the Irania war and a lack of clarity regarding what the coming hours and days will bring. The S&P 500 has gained significantly since the end of March. Day traders who have been too timid to participate in the buying frenzy are likely not feeling their best.
Cautious Sentiment as Buyers Remain Strong
Many large players have also missed the move higher in the S&P 500 which has developed the past two and a half weeks. Looking for optimism may be misguided at this juncture when trying to figure out why the S&P 500 has climbed so quickly, perhaps the thought that many felt the index had been oversold as fears about the Iran war languished is a better critique.
On the 31st of March the S&P 500 was valued near the 6,320.00 ratio. Yes, its momentum upwards has run into some intraday vicious reversals. Even if a day trader has been pursuing upside there have been moments when selling has been fast and caused second thoughts. Entering today’s speculative fight, once again traders will have to decide if large players will continue to exhibit muscle when buying.
Record Heights and Ambitious Outlooks
This past Friday’s highs that played with the 7,156.00 vicinity are in sight. The ability to sustain value above the 7,000.00 since Wednesday of last week is important.
The notion that the Iran ceasefire has remained viable the past week has seemingly helped those who desire tranquility (or at least the idea).
However, if the ceasefire is going to hold as new talks get underway in Pakistan between the U.S and Iran is a concern.
Traders who want to pursue higher ground in the S&P 500 cannot be blamed because that is where the wind has blown.
Yet, the potential of failed talks between the U.S and Iran developing near-term should also cause some reflection.
S&P 500 Short-Term Outlook:
Current Resistance: 7,140.00
Current Support: 7,120.00
High Target: 7,190.00
Low Target: 7,060.00