Trading position (short-term, our opinion; S&P 500 futures contract): In my opinion, the short-term outlook is bullish and long positions are still justified from the risk/reward point of view (since Feb. 27).
S&P 500 rallied on Friday – is a downward correction coming?
The S&P 500 index gained 1.23% on Friday as it broke slightly above its June 16 local high. The daily high was at 4,458.48 on Friday and the market was the highest since April of 2022. It retraced all of its recent declines following economic data releases, among other factors.
There is still a lot of uncertainty concerning monetary policy, some technology stocks’ valuation concerns, but the investors’ sentiment remains bullish.
Stocks will likely open 0.1% lower this morning. The market may see some short-term uncertainty and a lower volatility on a shortened trading session. The index is now close to the 4,450 mark as we can see on the daily chart:
Futures Contract Went Close to 4,500 Again
Let’s take a look at the hourly chart of the S&P 500 futures contract. It rallied to the 4,500 level again. It remains the nearest important resistance level. On the other hand, the support level is at 4,440-4,450, among others.
Conclusion
The S&P 500 index is expected to open slightly lower this morning. There have been no confirmed negative signals so far. However, the market may see a profit taking action at some point.
Here’s the breakdown:
- The S&P 500 accelerated its short-term uptrend on Friday.
- There have been no confirmed negative signals, however, a short-term downward correction may be in cards.
- In my opinion, the short-term outlook is bullish and long positions are still justified from the risk/reward point of view.
As always, we’ll keep you, our subscribers, well-informed.
Trading position (short-term, our opinion; S&P 500 futures contract): In my opinion, the short-term outlook is bullish and long positions are still justified from the risk/reward point of view (since Feb. 27).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
