SP500 Technical Analysis ES1! futures S&P 500 Index 5-04-23
Today’s Market Overview:
Yesterday at the market opening, we saw many participants trying to trade in different directions during the Federal Reserve System’s speech. However, many market participants suffered losses at that moment, as I mentioned in my earlier forecast. Large investment funds, foreseeing such a situation, simply changed their trading logic for that day and placed their positions and orders at the 4095 level. However, this level was later adjusted as well. As I mentioned in yesterday’s review, the market is expecting a sharp drop, and I hope my yesterday’s review was helpful for some of you.
Alright, let’s take a look at the medium-term outlook for the index. As I have been telling you and continue to do so for the past several months, the index is currently in a growth phase. The target of the index movement is still the level of 4310 and above.
However, the Federal System’s decision slightly adjusts the amounts of money required for reserves. Experienced traders and investors in large investment banks have already changed their expectations regarding the index movement, as it is simply mathematics. Now, after yesterday’s decision, their trading strategy is based on a level below 4000, something around 3980. In such a situation, the opportunities for speculators increase sharply.
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 stabilization and rise to the 4130-4160 level, after which it will continue its correction. Throughout the day, a decision will be made on the need for funding and allocation of funds for the stress resistance of investment banks. If such funding is deemed necessary and urgent, we may see a continuation of the index decline to the 3980 level.
Give me a thumbs up if you agree with today’s trading idea. Also, remember to contact me in 2-3 days for further trading advice. If you have any questions about my analytics and trading logic, I recommend reading the FAQ. Please share a link to my blog to help promote it. Follow me on Twitter to stay up-to-date on the S&P 500 index. Additionally, visit my About Me page to get to know me better.
