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).
Stocks extended their uptrend before giving back some gains – is this just a correction?
The S&P 500 index lost 0.20% on Monday as it retraced some of the Friday’s rally. However, the market reached new medium-term high of 4,299.28. It was the highest since August of 2022 yesterday. There is still a lot of uncertainty concerning monetary policy amid the debt ceiling deal, recent economic data releases, some technology stocks’ valuation, but the overall investors’ sentiment remains bullish.
Stocks are expected to open virtually flat this morning. The S&P 500 index will likely continue to fluctuate along the 4,300 level. Recently the index broke above its two-month-long trading range as we can see on the daily chart:
Futures Contract Bounced From 4,300
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it is trading along the 4,280 level. The resistance level is now at 4,300 and the support level is at 4,250, among others.
Conclusion
The S&P 500 will likely continue to fluctuate following its last week’s rally. The market may have entered a correction of the uptrend. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 bounced from the 4,300 level on Monday.
- There have been no confirmed negative signals so far.
- 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
