S&P 500: Clarity Delivered and Potential Bright Drive Ahead

OANDA:SPX500USD   S&P 500 Index
The S&P 500 begins today’s trading on the cusp of all-time highs and speculators cannot be faulted for anticipating the day ahead with excitement. Yesterday’s FOMC statement from the US Federal Reserve delivered clarity for financial institutions, and perhaps more importantly, met expectations.

This propelled equity indices higher and the major US stock markets rocketed higher in unison. The notion that the S&P 500 could break new records is actually not a major headline event; it is where the index could finish this week of trading that may prove to be breathtaking.

The trend higher in the S&P 500 is evident, and even contrarian speculators who believe the end of the bull market will end sooner rather than later must be feeling nervous at this time. Resistance levels continue to look vulnerable and targets above continue to look attractive. Yes, the index is certainly capable of producing a move lower, so it is important to have realistic expectations.

Conservative amounts of leverage must be used to protect against movements which are unexpected. However, technically the bullish momentum remains alluring, and the potentially correct wager.

Early future calls for the US markets appear to be optimistic and there is reason to suspect record values will be seen early today and junctures like the 4755.0 to 4765.0 marks will be seen relatively soon. Traders who are looking to buy the S&P 500 on slight dips in the market may find that they are being a bit too conservative today. Perhaps a better cautious approach to the index may be to become a buyer when resistance levels are penetrated; this means placing a buy order above the current market conditions and anticipating that a major juncture proving vulnerable could spur on additional speculative fury to the upside.

If a trader wants to sell the S&P 500 today on the notion they can find a profitable reversal downward for a quick hitting result, this to prove all of the optimists wrong, good luck, but it may feel like spitting into the wind. The trend of the S&P 500 has been upward and yesterday’s interest rate report from the Federal Reserve may prove to be a catalyst for the major indices heading into the holiday season.

Traders at financial institutions like nothing more than achieving highs as Christmas and the New Year approach, and they may achieve their aims handily. The potential for the S&P 500 to be near the 4800.0 juncture near term looks like a legitimate goal for those looking ahead.

S&P 500 Short-Term Outlook
Current Resistance: 4751.0

Current Support: 4727.0

High Target: 4785.0

Low Target: 4713.0

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