The S&P 500 as of this writing via futures trading is near the 6,958.00 ratio, this after apex highs around the 7,000.00 level yesterday after the better than expected U.S inflation numbers.
After the S&P 500 attained the 7,000.00 speculative target of large players and some day traders yesterday, the famed U.S index reversed lower with velocity. The better than anticipated CPI numbers published on Tuesday sent a shockwave of optimism into the marketplace and equities climbed rapidly, but this was momentary lightning. The S&P reversal lower was fast and soon found itself traversing the 6,950.00 ratio.
Top Regulated Brokers
The S&P 500 typically doesn’t move with the same velocity as the NASDAQ 100, this because it is quantified differently. But yesterday’s results were a fresh reminder when the S&P 500 does become volatile it can be quite dangerous while producing vast gains and suddenly dropping. The index at this moment is trading via futures market results around the 6,958.00 mark. Readers are advised to compare these written results to current conditions while looking at the markets because things are moving fast.
Lower Inflation Meets Greater Volatility
Now that the holiday season is fully behind the markets, financial institutions are active and trying to evaluate their outlooks on some rather perilous considerations for the mid-term. The Federal Reserve has seen a full fledged fight breakout within its FOMC as debate regarding interest rates flares. International affairs regarding the situation in Iran has some global investors nervous too. Yesterday’s lower than expected Consumer Price Index results surprised many analysts. The S&P 500 along with the other major indexes responded with significant buying, but this evaporated almost as quickly.
The S&P 500 is trading near highs certainly, but it remains a cautious betting landscape for day traders who are constantly battling intraday firefights via combustible values. Speculators who want to look for upside cannot be blamed, but they must be ready with stop losses and their tactics need to be not only solid, but lucky too. Support levels appear to be the best way to take advantage of buying into the S&P 500 for conservative technical short-term bets.
6,950.00 as Near-Term Barometer
Technical traders should look at the 6,950.00 ratio as a possible short-term barometer today. If the S&P 500 can maintain values above this level it will likely indicate large players are leaning into optimistic attitudes.
- Again, the S&P 500 has produced solid long-term upwards capabilities, but timing the market for day traders remains a dangerous game, particularly when they are looking for short-term wagers.
- Yesterday’s inflation numbers highlighted the nervous dynamics in the marketplace as debates rage about Federal Reserve interest rates.
- Today will see additional inflation numbers via the PPI reports from the U.S, but the result may not carry the same dynamic effect unless they also come in below expectations.
S&P 500 Short-Term Outlook:
Current Resistance: 6,960.00
Current Support: 6,942.00
High Target: 6,988.00
Low Target: 6,936.00
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.