S&P 500 Forecast Today - 23/05: Work Off Froth (Chart)
Date
5/23/2024 2:51:48 PM
(MENAFN- Daily Forex)
The S&P 500 went back and forth during the trading session on Wednesday as we are going back and forth to work off some of the excess froth that we have seen recently. After all, the market had shot straight up in the air over the last several weeks, and we need to work off some of the excess gains, which of course is very common in this market.
Technical Analysis
The technical analysis for this market of course is very bullish because quite frankly we continue to see traders jump in and take advantage of“cheap contracts” anytime they get the opportunity to. With this, I like the idea of getting involved in this market based on“value”, and of course the fact that momentum typically sticks with an index, as it takes quite a bit to turn it around for a longer-term move. Yes, recently we had seen a lot of selling pressure, but we have turned around and recaptured all of that rather quickly.
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Nvidia reports earnings after the Wednesday session, and that of course will have everybody excited. Whether or not that has an influence here remains to be seen, but if it is a win for the Bulls, then I would anticipate that almost everything rises again. Even if we fell from here, I like the idea of buying dips near the 5200 level, and then again, the 50-Day EMA which is currently sitting at the 5150 level.
On the other hand, if we were to break out to a fresh, new high, then it's likely that we could go looking to the 5500 level above, which is a large, round, psychologically significant figure that a lot of people will be looking at. All things being equal, this is a market that I think continues to look for value and eventually you will find it if it pulls back . Otherwise, we may just simply go sideways for a while in order to work off some of that excess that we can go higher from.
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