In early futures market trading this morning the S&P 500 is near the 6,335.00 mark, this after solid gains were made on Monday, which followed a strong selloff this past Friday, but also record highs on Thursday the 31st of July.
Speculators looking for fast price action in equity indices have been delivered their wishes the past week of trading in the S&P 500. This morning’s price action which is near the 6,335.00 follows yesterday’s gains. However, late last week widespread and tumultuous selling was seen on Friday when the U.S jobs numbers disappointed anticipated expectations held by financial institutions. Yet, this is not the end of the story.
Friday’s selloff last week followed a record apex high on the S&P 500 which flirted with the 6,440.00 level before seeing a wicked move lower emerge. A low of nearly 6,200.00 was seen on Friday when the bloodshed stopped and buyers began to step in again with some strength. Yesterday’s gain can be described in a number of ways, one such consideration maybe that financial institutions were buying the S&P 500 because it saw value after profit taking and a bit of fear were seen.
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Upwards Trend, Record Highs, and Caution Signs
Day traders are entitled to their opinions regarding the S&P 500 and all other equity indices. They are free to agree and disagree with others. However, the trend upwards created in the S&P 500 since April of this year has been rather strong. The record highs seen only last Thursday are once again back in sight for optimistic bullish perspectives. Perhaps apex highs will not be achieved again in the near-term, but those who want to sell the S&P 500 today and tomorrow will need just as much caution – if not more – than the folks who continue to bet on the mid-term trend.
The S&P 500 is above the 6,300 level rather comfortably in trading this morning, and traders should acknowledge these rather highly valued levels may have last Thursday’s apex highs in mind. Fast trading downwards certainly was seen on Friday due to a volatile mix of jobs numbers, tariff considerations and Fed turmoil. But financial institutions have been dealing with these type of issues for months and still have created an upwards trend over the mid-term in the S&P 500.
Reversals Lower and Speculative Notions
Yes, traders can look for downside. Perhaps the S&P 500 is valued too high. But as one of the world’s biggest equity indices representing the giants of U.S industry and commerce, it would be unwise to bet against it too much currently.
- The move higher in the S&P 500 is definitely being fueled by sentiment which continues to show an inclination for higher values.
- Fighting the trend upwards should be done carefully.
- Friday’s selloff may have been a warning sign that things are not all well, but yesterday’s move higher shows buyers do remain.
- The ability of the S&P 500 to move higher should be taken seriously, it is close enough to apex values to likely draw the attention of more buyers.
S&P 500 Short-Term Outlook:
Current Resistance: 6,345.00
Current Support: 6,305.00
High Target: 6,390.00
Low Target: 6,270.00
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