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 before session’s open).
Stock prices broke above their recent highs yesterday – will the S&P 500 reach 4,200?
The S&P 500 index gained 1.33% on Thursday as it broke above the recent local highs on a lower-than-expected Producer Price Index release. The daily high was at 4,150.26 and it was the highest since February 14. Recently the index was advancing from March 13 local low of 3,909.16.
The S&P 500 index will likely open 0.2% lower this morning. There may be some profit-taking action following lower-than-expected Retail Sales number release. The broad stock market remains within its early February topping pattern, and below the important resistance level of 4,200 as we can see on the daily chart:
Futures Contract Remains Close to Local Highs
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is trading along the short-term resistance level of around 4,180-4,200. The market bounced from its month-long upward trend line.
Conclusion
Stocks are expected to open slightly lower this morning. They rallied yesterday and the S&P 500 index reached new medium-term high. There have been no confirmed negative signals so far. However, we may see a profit-taking action at some point.
Here’s the breakdown:
- The S&P 500 reached new local high on Thursday; today it may fluctuate following earnings, economic data releases.
- There have been no confirmed negative signals.
- 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 before session’s open).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
