S&P 500 Price Forecast – Stocks Show Volatile Reaction to Israeli Strike

S&P 500 Technical Analysis

Overnight electronic trading in the S&P 500 has been quite interesting as the market initially plunged only to turn back around. Israel attacked Iran although it appears it was more or less a symbolic attack than anything else. And because of this, we’ve seen a massive recovery. In fact, as I record this video, we are sitting right now right above the crucial 5,000 level. The 5,000 level has a lot of psychology attached to it, so as long as we can stay above there, we have a shot at bouncing. The market has recently pulled back roughly 5%, and at the lows overnight, it would have been closer to 6.72%.

So, this little bit of a correction might be looked at as a buying opportunity by some traders. The action, or perhaps better put, the subsequent reaction to the realization that the air raid wasn’t as invasive as one’s thought suggests that perhaps traders are finally starting to look for value and we may see a bit of a bounce. We are in the midst of earning season but the economic calendar next week, apart from that, is fairly light and that might have people focusing on trying to find value. It could actually end up being a good thing for US stocks in general. We’ll just have to wait and see. That being said, we are heading into the weekend, so I don’t expect the stock market to take off on Friday.

A lot of traders won’t be willing to send on a lot of risk over the weekend after last weekend got things really volatile as well. So could be somewhat stagnant for the rest of the day on Friday. Next week though, if we have a quiet weekend, we could see more of a drift higher.

For a look at all of today’s economic events, check out our economic calendar.