- On Monday, the S&P 500 saw quiet trading after digesting a significant number of economic announcements.
- The market is likely to continue to consider the 4200 level as a significant resistance barrier while looking at the 4000 level as a significant support level.
- The 50-Day EMA hangs around the bottom of the candlestick from Friday, and the 200-Day EMA sits near the 4000 level as well.
The S&P 500 is likely to move along with risk appetite and whether traders believe that the Federal Reserve is going to bail everybody out. Wall Street firms are in consensus about this. However, this is a market that continues to see a lot of choppy behavior and range-bound behavior as traders try to figure things out.
Signs of exhaustion near the 4200 level could provide an opportunity to exit the market and continue playing in the same range. However, if the market breaks above the 4200 level, the market could go up to the 4300 level, where the next significant resistance barrier is. Conversely, if the market breaks down below the 4000 level, the bottom could fall out, opening the possibility of a move down to the 3800 level.
Choppiness Ahead
This market will likely remain choppy through the summer as there are concerns about central banks tightening around the world, global slowing, and whether the Federal Reserve will stick to its guns. Given these factors and the ongoing earnings reports, there is so much noise out there that it's best to play this market from a range-bound perspective. However, hanging onto trades will be challenging now.
The market is likely to remain choppy as the summer progresses. With concerns about central banks tightening around the world, global slowing, and uncertainty surrounding the Federal Reserve's actions, investors are advised to approach the market cautiously. The earnings reports also add to the noise, making it difficult to determine the market's direction.
TL; DR: the S&P 500 saw quiet trading on Monday after digesting a significant number of economic announcements. The market will likely continue to consider the 4200 level as a significant resistance barrier, while the 4000 level could be a significant support level. With the market likely to remain choppy through the summer, investors are advised to approach it from a range-bound perspective and monitor market conditions closely.
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