The S&P 500 is around 6,807.00 mark as of this writing via futures trading this morning, this as the index has seen a bit more selling pressure develop and signs of nervousness are growing
Although the S&P 500 has not shown the price velocity downwards that the Nasdaq 100 has displayed recently, selling has taken hold in the index since Friday’s rapid selloff. The S&P 500 was around 6,920.00 when it began to move lower with a fast pace before going into the weekend. The index did touch a low around the 6,812.00 vicinity when selling was at its strongest on Friday. Yesterday’s price did attempt a reversal higher and the 6,850.00 mark was challenged.
However, buying power could not be sustained yesterday and selling again developed and started to test Friday’s lower values. Trading last night and into this morning via futures markets shows the S&P 500 tracing below the 6,810.00 mark. Again, while the selling on the S&P 500 has not been as violent as the price action on the Nasdaq 100, selling is being seen as large investors seem to be growing cautious.
Sentiment and Reactions From Investors
The S&P 500 can still be considered to be within the higher elements of its technical charts via a mid-term chart. No, the index isn’t particularly close to its apex highs around the 6,940.00 vicinity seen last week, but nor is it too far away. Two days of nervous results are not exactly a trend that day traders should get overly concerned by, except to say they should keep their eyes and ears attuned to broad market results via other indices – particularly the Nasdaq 100.
Yes, cautious results have been part of the investment window the past couple of months. But fear that a sentiment shift via large players involved with equities in AI may be starting to build momentum is a concern. If selling intensifies on the Nasdaq 100 – even if it is only for a day or two – there is a legitimate concern that nervous sentiment could thus be transferred into other spheres – namely the S&P 500 for a duration.
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Near-Term Speculation and Long-Term Outlooks
The S&P 500 is not viewed as a speculative index like the Nasdaq 100, but nevertheless cannot escape the clutches of intraday and inter-day results when nervous conditions are dominating the marketplace.
- The 6,800.00 level should be watched, because if it becomes vulnerable the S&P 500 could find some additional downwards pressure in the short and near-term that could look at mid-term technical charts and wonder where support will be found.
- The 6,780.00 ratio may present itself as a buffer.
- It appears that today’s results will be important for behavioral sentiment.
- Investors are looking for positive impetus.
- The holiday season is quickly approaching, but positive energy seems to be lacking for the moment in the markets. The S&P 500 may struggle a bit near-term.
S&P 500 Short-Term Outlook:
Current Resistance: 6,812.00
Current Support: 6,801.00
High Target: 6,825.00
Low Target: 6,780.00
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