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).
The S&P 500 retraced some of its recent advances yesterday – is the uptrend reversing?
The S&P 500 index lost 0.60% on Thursday after breaking below the 4,150 level and the upward trend line. On Tuesday it reached new medium-term high of 4,169.48 and yesterday it was as low as 4,115. Recently the index kept advancing from its March 13 local low of 3,909.16. Last week it rallied ahead of the coming quarterly earnings releases, among other factors.
Stocks will likely open 0.2% lower this morning. So they will fluctuate within their yesterday’s trading range. The index continues to trade along 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 4,150
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it’s trading slightly along the 4,150 level. So it is basically unchanged since yesterday’s before the cash market’s open. The support level is at 4,100-4,120 and the resistance level remains at 4,175-4,200.
Conclusion
The S&P 500 index is expected to open 0.2% lower this morning. So it may see some more short-term consolidation. There have been no confirmed negative signals so far and for now it looks like a correction within an uptrend.
Here’s the breakdown:
- The S&P 500 broke below its upward trend line.
- For now it looks like a correction as 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
