In early trading this morning the S&P 500 is around the 6,736.00 area, having produced gains in the previous two days and likely causing speculative angst among day traders who remain cautious.
On the 9th of October the S&P 500 achieved a record high of nearly 6,773.00, this was accomplished after the U.S government shutdown on the 1st of October. On the 13th of October the S&P 500 was around the 6,500.00 mark. And now a little more than one week later as of this writing the S&P 500 is close to the 6,736.00 in futures trading this morning.
The index is within close enough sight of its record levels around the 6,773.00 vicinity to likely be causing double takes from conservative speculators who have stayed out of the wagering fight the past few weeks. While the U.S government shutdown looks as if it will continue for the foreseeable future, large investors continue to prove they are not that affected by near-term concerns and incrementally push money into the S&P 500.
Short-Term Nervousness and Long-Term Faith
The battle of sentiment taking place in the S&P 500 at the moment is not surprising. If the excuse of a government shutdown wasn’t being used by people who don’t want to step forth as buyers of the index another myriad of reasons would likely be found. Perhaps the refrain that the S&P 500 is too high and must come down would be heard. But just because this caution is being thought of and heard in some circles it doesn’t make it correct.
No, there are certainly aren’t any guarantees the S&P 500 will continue to incrementally edge higher and search for resistance levels and prove them vulnerable in the short and near-term. There is always a chance profit taking or an actually negative influence could cause the S&P 500 to move lower in a rapid manner. However, the bullish trend of the index upwards cannot be denied.
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Resistance Around the 6,750.00 as a Target
Although the S&P 500 is not in record territory, it might be able to accomplish new apex heights sometime this week. Again, obviously there are no guarantees, but betting against upside momentum and looking for support levels to be tested may be wrong.
There is a genuine sentiment still in the marketplace it appears for higher values to be conquered.
Timeframes are as always difficult to predict. And yes intraday reversals lower remain as always a testing ground for day traders.
However, if the S&P 500 can somehow grasp onto the 6,750.00 level today and sustain this ground, it might be a signal large player believe higher altitudes in the index are attainable.
The U.S government shutdown is going to remain a fixture today and tomorrow it appears, but financial institutions seem uncaring still.
S&P 500 Short-Term Outlook:
Current Resistance: 6,743.00
Current Support: 6,729.00
High Target: 6,775.00
Low Target: 6,718.00
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