The S&P 500 via futures trading on CFD platforms is around the 6,830.00 ratio at the time of this writing. Today’s trading is likely to be rather disruptive as U.S financial institutions return from their long holiday weekend.
Day traders considering pursuit of the S&P 500 today should be conservative. Friday’s close on the S&P 500 was around the 6,947.00 mark. Yesterday’s trading via future markets however, started with a large gap lower, this as the cash S&P 500 market remained closed for the U.S Martin Luther King Jr. holiday. The S&P 500 traversed close to the 6,885.00 ratio quite a bit yesterday. The gap lower as the cash market remained closed yesterday was a definite sign of nervousness.
Today’s opening via the futures market once again has displayed weaker sentiment. The S&P 500 via CFD platforms produced another dramatic drop early this morning, currently the index is around the 6,830.00 level. The cash market for the S&P 500 will open in a handful of hours and speculators with limited funds may want to stand to the side and allow large players to demonstrate how they feel about current market conditions.
S&P 500 Consistency to be Tested
Since attaining apex highs on Thursday of last week, which flirted with the 7,000.00 realm briefly, the S&P 500 has struggled. However, the incremental selling on Friday was rather polite and the index remained well within the healthier upper tier of its value. However, the constant chatter over the past few days from the White House regarding Greenland and other potentially combustible issues seem to have sparked a stronger nervous reaction over the weekend, yesterday and early this morning.
Behavioral sentiment is showing signs of fatigue. The S&P 500 and institutional investors seem to be in need of optimism and where that is going to come from appears difficult to guess for the short-term. President Trump is scheduled to speak in Europe tomorrow while attending the Davos summit in Switzerland. President Trump is famous for his ability to speak in a rather straight forward manner peppered with surprises. Large traders are likely to react to Trump’s speech tomorrow. The consistency of the S&P 500 has faced headwinds via futures markets yesterday and early this morning, via selloffs, the cash S&P 500 market is certain to get the attention of everyone when it opens today.
Support Levels Must be Watched Now
Having tested all-time highs only a handful of days ago, the S&P 500 today must be watched because of its potential to test support levels. The S&P 500 may be viewed as oversold by large investors, but the selloff in the futures markets the past day and a half are not positive signals.
Choppiness and spikes should be anticipated today in the S&P 500 as market equilibrium is sought.
If the S&P 500 sells off after the cash opens today and bearishness is sustained, this could signal dangerous trading ahead for the next few days.
The U.S will release GDP numbers on Thursday too.
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S&P 500 Short-Term Outlook:
Current Resistance: 6,840.00
Current Support: 6,820.00
High Target: 6,920.00
Low Target: 6,750.00
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