While broad market conditions continue to generate noise from a variety of sources regarding speculative values, and hyper velocity and general unease about the ‘feel’ of the major U.S equity indices, the S&P 500 remains locked into the upper realms of its historic price. The futures market this morning has produced another uptick and the 6,979.50 ratio is being demonstrated.
On early last Friday the S&P 500 was near the 6,738.00 vicinity as it touched lows not seen since the middle of December. But a quick turnaround has provided upside momentum and the index is once again traversing within sight of record highs. The 7,000.00 level remains a target psychologically for most investors who keep an eye on day to day movement. Day traders cannot be blamed either for thinking about this ratio.
7,000 Quest Amidst Nervous Conditions
The S&P 500 does not move as fast as the Nasdaq 100, yet it is still used as a wagering landscape by retail traders via the CFD marketplace via brokers’ platforms. The broad markets have seen fast conditions the past couple of weeks with plenty of volatility but the S&P 500 has remained within sight of the 7,000.00 juncture which in fact it did traverse above in late January and early February.
Sustained highs have been hard to create the past couple of weeks in the S&P 500. Day traders need to potentially wait for a push above 7000.00 that endures before they become convinced an upwards bullish trajectory anew is about to be created. Until then choppy conditions are likely to prevail, particularly as financial institutions await today’s Retail Sales data, tomorrow’s jobs statistics, and importantly – Friday’s Consumer Price Index results.
Short-Term Wagering in Nervous Markets
While it may feel contradictory to express nervousness about the S&P 500 as it flirts with record levels, the overall behavioral sentiment being expressed remains rather cautious from financial institutions.
- Perhaps this is a way by large players of protecting themselves if the broad markets do become volatile downwards again, like has been seen a handful of times the past two weeks via strong reversals lower.
- The ability of the S&P 500 to traverse top tier levels is attractive, but there has been a definite sense of headwinds blowing that have not allowed the index to achieve confident highs which feel like they will press further into new territory above.
- Perhaps it will take positive economic data from the U.S this week to achieve that ambition. Can it be accomplished?
S&P 500 Short-Term Outlook:
Current Resistance: 6,982.00
Current Support: 6,972.00
High Target: 7,015.00
Low Target: 6,957.00
