S&P 500 is set to expand its consolidation: is this a hill pattern?
The stock prices proceeded on Thursday, despite the first withdrawal, S&P 500 closes 0.38% higher and extended short -term fluctuations. However, this morning, the rise of the Iran-Israeli conflict of the S&P 500 is expected to be 0.9% lower overnight. However, the market has withdrawn a large part of its decline since then.
Investor’s sensation, as reflected in the AAII Investor Emotion Survey on Wednesday, 36.7% of individual investors increased, while 33.6% decreased.
The S&P 500 increased its consolidation above 6,000 levels.
Nasdaq withdrew from 100 22,000
Nasdaq closed 0.24% higher on 100 Thursdays and today it will be 1.1% lower. Today’s trade is guided by the Middle East developments, so the market is likely to be news -oriented. However, the backgeline of the nightgowns can be considered as a positive signal.
The resistance is around 21,700.
It remains below Vix 20
The Volatility Index (VIX) fell to a local lowest level on Wednesday, which showed that investor’s fear is reduced. Yesterday, the stocks came back as they retreated, but remained below 20 levels.
Historically, a falling Vix shows less fear in the market and accompanies the rising VIX stock market regression. However, the lower the VIX, the higher the probability of reversing the market. On the contrary, the higher the VIX, the more likely the market will reversed upwards.
S&P 500 FUTURES: Still around 6,000
This morning, the S&P 500 -term transactions contract returns from 5,928 at the lowest level of a night that is currently close to 6,000 levels. It continues to fluctuate after May progress. Support is around 5,900-5.920, resistance at 6.050.
Solution
Friday’s trade session is likely to be opened with a negative note. However, the emotion recovered after the market returned from the scourges overnight. Investors will be waiting for key economic data this morning – Michigan University Consumer feelings with Michigan University inflation expectations. The market will also pay attention to the news about the Middle East conflict.
Here is the fault:
- The S&P 500 will be lower due to news of the Middle East crisis.
- There is no clear signal yet, but there is no point in a deeper downward correction.
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