The S&P 500 hit record highs only two days ago ladies and gentlemen. In the midst of a Middle Eastern war in which WTI Crude Oil prices have sparked upwards and are traversing above $100.00, U.S stock markets have essentially flourished with apex historical values. But this might not be enough to keep nervous traders from complaining. Unfortunately for all speculators and large players in the S&P 500, upwards momentum is not always guaranteed.
The downwards – albeit choppy – results seen the past day and a half might have ruined the optimistic parades launched because of the 7,200.00 mark being hit on Tuesday, but let’s try to remain realistic. This morning’s reading via futures markets around the 7,145.00 realm is still pretty impressive. Sustained values above the 7,0000.00 ratio is something U.S equities can point to as a significant feat.
Thursday and Friday Trading May be Cautious
However, the slight winds created lower the past day and a half have slowed day traders who only want to pursue upside. Betting on the direction of the S&P 500 remains challenging even as a strong bullish run upwards has been demonstrated since the 31st of March. Financial institutions have powered the index higher as they have digested their nervous sentiment and bought into the notion that values were completely oversold at the end of March.
After the apex values of Tuesday and as the price of WTI Crude Oil remain elevated, caution has started to be seen. Yes, warning signs that a potential landslide in values could occur are apparent in many places and analysts sometimes can be heard speaking about doom. Yet, the S&P 500 remains within its highest realms ever achieved. And now as the weekend approaches in a day and half, speculators will have to decide where sentiment will drive near-term outlooks.
Inflation Concerns and a Cautious Wagering Ground
Betting on a steady diet of new heights in the S&P 500 can be done, but deep pockets and patience are needed sometimes. The index has shown it can climb and financial institutions are willing to buy but it is not always a straight line.
Speculators need to always remember things can go badly because of intraday volatility and the appearance of downwards momentum.
The past day and half should remind folks that one way streets can sometimes turn into dead ends.
Traders cannot bet blindly on upside.
The high price of energy will cause concerns among many and behavioral sentiment will remain volatile.
The near-term promises more choppiness and sentiment is swirling.
Looking for upside after technical support is touched may be appropriate, but stop losses need to be used.
S&P 500 Short-Term Outlook:
Current Resistance: 7,155.00
Current Support: 7,130.00
High Target: 7,190.00
Low Target: 7,120.00