S&P 500 Forecast: Looking For A Move To The 4300 Level
Date
5/31/2023 4:41:51 AM
(MENAFN- Daily Forex) Advertisement ready to place your own orders? open a free practice account Following the Memorial Day holiday in America, the S&P 500 index experienced a positive trading session on Tuesday. It appears that the index is determined to reach the 4300 level, which has previously served as a significant swing high. Given the current market momentum, shorting this market seems nearly impossible. During such times, the Stock market tends to be driven by strong momentum. Traders should exercise caution but acknowledge the high likelihood of testing the 4300 level. A breakout above this level would potentially pave the way for a more sustained "buy-and-hold" scenario, facilitating a larger market move.The "Rally That Everyone Hates" Conversely, if a turnaround occurs and negative sentiment emerges, the market could experience a significant downside move, possibly causing a shock to the system. However, any potential selloff is expected to be relatively limited in scope. In such situations, traders should consider buying on dips or identifying value opportunities. The 50-Day exponential moving average (ema) sits just above the 4100 level, making it a crucial level to monitor closely.
In the event of a breakdown below the 50-Day EMA, the market may seek support near the 200-Day EMA, which is closer to the 4050 level. Consequently, the market is likely to attract value hunters at this level, creating a situation where support could be established. Patient traders who exercise diligence are likely to be rewarded in such a scenario. However, it is important to note that a further decline below the 200-Day EMA could lead to a more unfavorable situation, potentially generating a bearish trend. Given the current environment, this seems unlikely unless the Federal Reserve were to significantly shock the market. This market situation aligns with the notion of a "rally that everyone hates," exemplifying the contradictory nature of the current rally. Ultimately, the S&P 500 exhibited a positive trading session on Tuesday following the Memorial Day holiday. The index appears determined to reach the 4300 level, a major swing high in the past. shorting the market under such strong momentum is challenging. Traders should exercise caution while recognizing the high probability of testing the 4300 level. A breakout above this level would set the stage for a more sustained "buy-and-hold" scenario, facilitating a larger market move. Conversely, any potential downside should be limited, leading traders to consider buying on dips or identifying value opportunities. The 50-Day EMA and 200-Day EMA serve as important levels to monitor. While patience is key, diligent traders are likely to be rewarded. However, unless there is a significant shock from the Federal Reserve, a further breakdown seems unlikely in the current market environment. Ready to trade the forex s&p 500 ? We've made a list of the best online cfd trading brokers worth trading with.
MENAFN31052023000131011023ID1106362097
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.