The S&P 500 which was near 6,320.00 at this time last week is now close to 6,625.00 via futures trading this morning. While risks certainly were highlighted before the onset of the Good Friday and Easter holidays, large traders showed a taste for buying after low water marks were created last week. Perhaps the feeling that equities had oversold created the ability to look for discounted valuations and the higher surge.
However, before day traders decide to step into a seemingly strong upswing in the S&P 500 they should view the existing landscape which remains rather tentative because of dark shadows. The Iranian war has not gone away. In fact an important deadline exist today regarding negotiations via a deadline the Trump administration has set for 8:00 pm EST tonight. Conditions will be fast today and tomorrow.
Next 24 Hours and Uneasy Trading
Day traders who want to pursue the S&P 500 today and into tomorrow will need all their risk management ready. The index while having gained when trading has functioned the past handful of days is still within the lower elements of its three and six month charts. Yes, traders could look at the current values as a chance to buy cheaper stocks, or as a warning sign that not all is well and things will continue to selloff rapidly when anxiousness grows.
Sitting on the sidelines for the next 24 hours would be a conservative, but maybe a wise decision by speculators without deep pockets and the lack of ability to stay in trades that are too volatile. The S&P 500 is certain to be fast as the hours tick down to President Trump’s deadline. Looking at technical charts today and tomorrow will show behavioral sentiment readings, but traders are advised to question if the price levels seen represent genuine clues for direction over the short-term.
Misinformation and Realities of Trading During War
The S&P 500 may still look cheap. It may look like an opportunity to accumulate value. However, that is not how day trading functions.
Speculators who have to deal with intraday results need to make sure they understand that wagering on the direction of the S&P 500 is about picking the correct direction the index will traverse, and if the trader can sustain a position until it reaches a chosen target.
And goals numerically for the S&P 500 over the next day should be kept within a realistic framework.
Overly ambitious targets could prove dangerous.
Noise coming from Iran is certain to be heightened, and the response from the U.S will likely provide the ignition for volatility in the coming hours.
Nervous conditions are certain to prevail.
S&P 500 Short-Term Outlook:
Current Resistance: 6,640.00
Current Support: 6,615.00
High Target: 6,695.00
Low Target: 6,540.00