The S&P 500 is a volatile market at the moment, as we fell, only to turn things around and test resistance.
S&P 500
The S&P 500 continues to be noisy as we fell early during the trading session on Thursday, running into a significant barrier at the top of an ascending triangle and perhaps trying to move away from the crucial 7600 level. The 7600 level is an area that's been important multiple times in the past, and it is the top of an ascending triangle that I think a lot of people have been watching for a while. At this point, if the market were to break above the 7600 level, I do believe that the S&P 500 has the ability to go much higher.
Earnings Season Volatility and Geopolitical Influences
I would also postulate that, judged by the price action that we've seen recently, it makes a lot of sense that we do eventually see this as a market that will eventually have a reason to break out. After all, every time we fall, it's a little bit less than the time before, and there certainly seem to be buyers out there willing to get involved and find value along the way. We are in the middle of earnings season, and that, of course, has a major influence, right along with the headlines coming in in the Middle East, which could have a major influence on oil prices, which, of course, brings in inflation fears via energy.
Top Regulated Brokers
It's worth noting that the 7500 level has held for the last week and a half or so as support, and that means that we are just simply squeezing in a 100-point range. If we can break above 7600, then the market is likely to go much higher. Based on the measured move of the ascending triangle, you could even be talking about 7900 between now and the end of the year. I don't really see that as a wild assumption, considering that we've been in a massive uptrend, then consolidated for a while to work off some of that froth, and now it looks like we are trying to do everything we can to break out.
Ready to trade our daily stocks forecast? Here are the best CFD brokers to choose from.