The S&P 500 continues to see a lot of pressure in general, as we are moving on the latest headlines daily it seems.
The S&P 500 is trying to find a bit of a floor at the moment as the 6800 level continues to be a bit of a support level. That being said, the market is likely to continue to see a lot of bullish behavior every time we get close to that 6800 level, and despite the fact that there are a lot of concerns around the world right now when it comes to risk appetite, the reality is that the market is pretty resilient considering everything that's going on.
Now, you can make an argument that it is looking for a little bit soft and maybe we do get a pullback, but I think it's very limited. We've been in a 200-point range for the last 3 or 4 months, and it doesn't look like we're ready to go anywhere, so maybe we're just simply bouncing around trying to find a reason to move.
Support and Resistance Levels
If we do drop, the 200-day EMA is an area that I'd be looking for some type of bounce and then the 6500 level. If we break out to the upside, clearing, hopefully, the 6900 level, then we have a real shot at testing the 7000 level. If you can break above the 7000 level, then it opens up the possibility of a much bigger move.
Top Regulated Brokers
I do think eventually that ends up being the case, and quite frankly, whether you like it or not, war is typically good for the stock market eventually. That's because there's a lot of spending all of a sudden. And let's be honest, the stock market has been moving on spending more than anything else.
So, with that being the case, I remain optimistic, but I also recognize that headlines can cause sudden dips. Therefore, the only thing that you can truly take advantage of, or I should say truly control in this situation, is your position size. A small position size is not the worst idea here.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.