It is important to note that the market has entered a “blackout period” during which companies are prohibited from buying back their own shares.

  • The S&P 500 had a relatively flat trading session on Monday and showed minimal movement as it encountered resistance near the 4500 level.
  • This lack of significant activity is no surprise considering the upcoming Independence Day holiday on Tuesday, which will lead to limited electronic trading in the futures markets.
  • While the underlying index will remain open on Tuesday, many traders decided to hold off on big moves due to the holiday and the tendency for most Americans to take Monday off, including business firms.

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A key focus for traders is the potential for a break of the 4500 level, which would serve as a highly bullish signal. Such a move could trigger another bullish leg in the market, leading to a potential breakout. However, it is more likely that the market will experience further consolidation before any significant breakout occurs. The 4400 level could provide a level of support during this consolidation phase. Should the market decline further, the 4300 level, which is in line with the 50-day exponential moving average, may serve as a stronger support zone. A break below this level would be necessary to consider shorting the market, but such a scenario does not appear likely in the near term.

It is important to note that the market has entered a “blackout period” during which companies are prohibited from buying back their own shares. This restriction had a significant impact on the S&P 500 as several major players engaged in share buybacks. Market dynamics have been heavily influenced by a handful of stocks and this pattern is likely to continue as the market continues to go through the ‘AI story’. With this in mind, traders can look for a pullback that offers an opportunity to take advantage of value. Identifying a support candle on the daily chart later this week could provide an attractive entry point.

The S&P 500 showed limited movement during Monday’s trading session, hitting resistance near the 4500 level. This lack of activity can be attributed to the upcoming Independence Day holiday and reduced trading participation. While a break above the 4500 level would signal bullish sentiment and potentially push the market higher, further consolidation is more likely in the near term. Support levels to watch include 4400 and 4300, which coincides with the 50-day EMA. Traders should also consider the impact of the ongoing blackout period, which is restricting companies from share buybacks and affecting the market. By waiting for a potential pullback and identifying a support candle on the daily chart, traders can find favorable entry points to take advantage of value opportunities.

S&P 500

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