Quiet Day for the S&P 500 and Wall Street

The S&P 500 has gone back and forth during the course of the trading session on Monday as we are simply hanging about just below the 4500 level. All things been equal, this is a market that being quiet is a good sign, because quite frankly that is what we need. When you have had a major volatile move, the less volatility that you see, the more likely you are to attract more traders. Ultimately, volatility has been so nasty that it is not a huge surprise to think that a lot of traders are simply sitting on the sidelines. It is worth noting the volume has dropped rather significantly, so I think there is a lot of “wait and see” out there.

S&P 500 Video 08.02.22

The 200 day currently sits at roughly 4400, and I think it is an area that you should pay attention to if we do fall. It is also worth noting that we formed a nice-looking hammer on Friday, but then again it was also a very low volume day comparatively. While I am very cautious at the moment, breaking above the 50 day EMA offers the possibility for more technical traders to come back into the market, and of course it would be a breach of the 4500 level, which is a very good sign. A lot of traders are starting to question whether or not the Federal Reserve is going to be able to tighten monetary policy is much as they suggest, and if that is going to be the case then some people will be out there trying to “front run the Fed.”

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