The S&P 500 has been doing well over the long-term. Day traders perhaps have not been able to profit easily from upside value in the index the past few months due to choppy conditions, but on a whole the S&P 500 has been rather steady. The results in the S&P 500 have certainly delivered calmer upwards momentum than the Nasdaq 100 over the mid-term. Last week’s lower momentum did see the 6,800.00 momentarily challenged, but after nervousness was handled and more positive sentiment emerged, the S&P 500 has found higher ground again.
As of this morning’s trading and following yesterday’s gains, the S&P 500 is near the 6,967.00 level with sustained price action as the index awaits its cash open on Wall Street in a few hours. The S&P 500 is once again within sight of all-time highs and the 7,000.00 level certainly remains a target and a talking point for investors. Yesterday’s ability to hit the 5,000.00 mark in gold was achieved and sustained with higher values. Day traders need to understand milestones effect the mindsets of investors just like everyone else.
Behavioral Sentiment is Positive
There has been plenty of noise in the broad markets the past few weeks and it may not disappear, in fact speculators need to understand that new noise will certainly emerge. But for the moment importantly, the sentiment for U.S indices has once again become a game of risk on. Day traders need to understand that even the high and mighty S&P 500 is moved by something as simple as sentiment.
Positive momentum and perhaps the simple thought that financial markets have survived what was framed as bad news globally, has likely helped fuel the buying power now being seen on Wall Street. The S&P 500 has not only sustained its higher ground rather easily after nervous trading, but yesterday’s lower price action produced a strong reversal upwards that seems to have gathered more power early today.
Momentum Higher Looks Intriguing
Momentum and optimism are now suddenly being ignited in the marketplace. Perhaps the optimism will be short-lived, but day traders need to consider that while the S&P 500 certainly has the capacity to always move lower, it frequently doesn’t.
- In fact the upwards momentum of the index is something financial institution rely upon and this is not going to change.
- Tomorrow the U.S Fed will release its FOMC policy, it is not expected to cut interest rates.
- However, financial institutions are betting on a more dovish Fed in the coming months.
- Behavioral sentiment for the moment appears worth speculating on in the near-term for upwards flashes.
- If the 6,970.00 to the 6,980.00 ratios see sustained highs today, financial institutions may create additional velocity upwards.
S&P 500 Short-Term Outlook:
Current Resistance: 6,971.00
Current Support: 6,962.00
High Target: 6,993.00
Low Target: 6,939.00