S&P 500 trading this morning via futures are lower again, this as U.S equity indices continue to show they were not pleased with rather uncertain rhetoric from the U.S Federal Reserve last week.
The S&P 500 is near the 6,790.00 ratio early this morning via futures trading. The S&P 500 certainly remains within the higher elevations of its mid and long-term values, but headwinds the past few days of trading have seen caution become a rather steady sentiment expressed. Since the Fed’s FOMC meeting last week which delivered the anticipated interest rate cut of 25 basis points, but failed to give a clear outlook about what the Fed will do in December, U.S equity indices have struggled.
As the S&P 500 fights below the 6,800.00 realm short-term day traders may feel that this is a legitimate target to look for a quick hitting wager upwards. However, U.S equity indices across the boards this morning have produced rather swift selling. It appears that investors are seeking another dose of positive impetus before they create more buying momentum.
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Short-Term Troubles vs. Long-Term Notions
The S&P 500 may continue to produce rather choppy headwinds today. The U.S government remains shutdown and is within reach of becoming the longest closure in U.S history. Yet investors do not seem overwhelmingly concerned about this issue. Perhaps the inability of the U.S Fed to commit to another interest rate cut in December has caused problems, on that note U.S ten year bonds are moving incrementally higher in the short-term via their yields. Where will positive momentum come from?
Speculators from afar looking at U.S markets today also should know that elections are taking place in the States today. While the votes in several areas are considered minor, the outcome for the NYC Mayor job may cause some temporary reactions when the results are known – supposedly – around this time tomorrow. Short-term day traders should be aware that there may be plenty of noise generated today in media circles that could cause some caution among investors.
Speculative Selling Prospects for Gamblers
If market conditions remain nervous over the next few hours and U.S investors feed off of selling pressure that has been seen in futures trading in the S&P 500 early today, some adventurous speculators who are looking for momentary downside price action may believe the 6,770.00 ratio is a target.
- If selling persists throughout today the 6,750.00 ratio could trigger another dose of selling if it is penetrated lower.
- While looking at the potential of downside action, day traders have to also consider the possibility that bigger players may be lurking, and ready to cause reversals higher and return the S&P 500 back over 6,800.00 with the flick of a switch rather easily.
- The short and near-term in the S&P 500 today and tomorrow may prove rather fickle and choppy.
S&P 500 Short-Term Outlook:
Current Resistance: 6,805.00
Current Support: 6,785.00
High Target: 6,860.00
Low Target: 6,740.00
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