(MENAFN- Daily Forex) The s&p 500 market experienced some initial selling during Thursday's trading session, as futures traders sold off the contract. However, as Americans returned to work on Wall Street, they began buying stocks, leading to a rally in both the futures market and the cash index. Currently, the 50-Day ema and the 200-Day EMA are offering a little resistance, and both are flat, suggesting that the market is consolidating and trying to figure out where to go next. After all, the biggest problem with Wall Street is there's always some type of narrative that people are willing to follow. I suspect we are formulating that at the moment.
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The 4100 level above is likely to be significant resistance and will attract a lot of attention. If the market were to break above this level, then it could go looking to the 4200 level, but it would require significant momentum to make that happen. However, the market is likely to remain very noisy as investors try to figure out what will happen with interest rates, which seems to be the only game in town. While we have gone through another earnings season, most people haven't paid too much attention to it. Instead, the focus is on Jerome Powell and whether he will continue to raise rates aggressively.Approach the Market with Caution
If the market were to break down, the 3900 level could offer significant support , and if it were to break down further, the 3800 level could become a critical level to watch as it was the scene of a significant swing low. Anything below there could lead to a significant drop in the market. However, the market is likely to continue to see a lot of back-and-forth noise in this overall range, so traders may be better off trading back-and-forth in some type of short-term range-bound trading system.
Overall, the S&P 500 market remains in a consolidation phase, with significant resistance at the 4100 level and support at the 3900 level. The 50-Day EMA and the 200-Day EMA are offering resistance, and the market is likely to remain noisy as investors continue to focus on interest rates. While the market may see some short-term movement, it is unlikely that there will be significant moves in the short term. Traders should approach the market with caution and focus on shorter time frames while keeping position size reasonable.
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