SP500 Technical Analysis ES1! futures S&P 500 Index 5-01-23
Today’s Market Overview:
Last Friday, at the market opening, we saw a sharp increase in the index to the 4180 level, which I mentioned earlier. In my previous review, I talked about the market’s potential for a sharp rise to the 4180-4205 level, and although this potential has not been fully realized yet, there is still a possibility for the current growth to continue to the 4205-4215 level.
However, right now, at the 4215 level, there are many orders from experienced speculators to open short positions, and I also expect this level to be a good point for medium-term investors to lock in profits, as they have made a substantial income over the past few days.
Therefore, when talking about a possible place for stabilizing the current growth movement and the nearest index reversal point, it will be at the 4205-4215 level. If you want to better understand my trading logic, I recommend you visit my website and read the FAQ section.
Now let’s look at the market on a global scale. As I mentioned earlier, the market continues to grow to the 4310 level, where I expect an attempt to stabilize the index in the long term. My views on the market have been positive for the past 6-8 months, as I have consistently mentioned in my market reviews. However, everything may change after the index reaches the 4310 level. This is because investment funds will start to lock in profits and exit projects, as the investment return, which is the goal of any investment activity, will be achieved, and many investment companies will be able to leave the market, providing good dividends for their investors.
Thus, my outlook on the market remains positive.
If you didn’t see my analysis yesterday, you can check it out here.
What to expect today:
Today, at the beginning of the trading day, I expect the index to attempt to stabilize its movement and drop to the 4170-4150 level. However, the index will then continue to grow and reach a local peak in the 4210-4230. It is at this level that experienced speculators will start to lock in their profits, which they have gained thanks to the recent sharp rise. Most likely, they will also open new short positions, increasing the volume of orders in the market.
Overall, the market is in a growth phase, but difficulties may arise at the nearest levels (4205-4215 and 4310) due to profit-taking by experienced speculators and investment funds. Therefore, to be prepared for possible changes in the market, it is important to keep an eye on price dynamics and events that may affect the market.
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