The S&P continues to produce rapid results for speculative day traders, this as investors create higher record territory amidst price velocity that must be watched before wagering on directions.
As of this writing the S&P 500 via futures market trading is near the 6,336.75 ratio. Having broken through the 6,300.00 level last Thursday, highs of nearly 6,374.00 were attained yesterday. Day traders of the S&P 500 need to understand the magnitude of potential volatility they will face before pursuing the stock index. Risk taking tactics need caution because price velocity in the S&P 500 as it traverses these record heights are extremely fast.
Yesterday’s surge higher looked as if investors were aiming for the 6,400.00 level, but after the 6,375.00 mark was flirted with the S&P 500 did reverse lower. Traders who were tempted to buy at the extreme highs with a vision of 6,400.00 cannot be blamed, but the cash market proved that financial institutions and large players also have the ability to cash out profits too. Doubters who have stood on the sidelines watching the rise of the S&P 500 are likely questioning their decision making processes and considering alternative actions.
Ability to Move Higher as Shadows Loom
U.S stock markets have become playgrounds for upside wagering the past three months, but buying without caution can cause massive losses. Price velocity in the S&P 500 is significant and when leverage is being used can produce fast results – both good and bad. Even as shadows via the Federal Reserve’s interest rate policy and President Trump’s tariff agreements await clarity, investors seemingly are parading into the notion that upside in the S&P 500 is the place to be.
Yet, as the clock ticks and interest rate pronouncements from the Fed and President Trump threaten to turn the buying party into a selling storm, a strong downturn has not emerged – at least not yet. Cautious day traders who want to pursue the trend upwards in the S&P 500 cannot be blamed, but they should take precautions which limit their exposure to the risk of a sudden selling trend emerging. The record heights of the S&P 500 will be put to the test again today. Both the S&P and Nasdaq are clearly attracting speculative buying from investors.
6,4000 and Above Could Be Too Far
Staying realistic when wagering on the S&P 500 is vital. Targets above yesterday’s highs and thoughts of momentum driving the price of the index to the 6,400.00 should not be undertaken by day traders unless they have deep pockets, patience and the ability to hold a trade over the near-term.
- Instead speculators who need to be cautious should aim for quick hitting targets and consider using perceived support levels as a place to look for additional upside in the S&P 500.
- Yes, shadows loom via the Fed and Tariffs, but the buying trend should not be fought too hard by speculators.
- The 6,330.00 to 6,320.00 ratios may represent territory that conservative traders want to try and look for upside if these lower support levels get tested.
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S&P 500 Short-Term Outlook:
Current Resistance: 6,339.00
Current Support: 6,325.00
High Target: 6,379.00
Low Target: 6,3109.00
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