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).
The S&P 500 extends its consolidation ahead of earnings releases – will the uptrend continue?
The S&P 500 index gained 0.9% on Monday as it continued to fluctuate within a relatively narrow trading range following its last week’s Thursday’s retreat. On Tuesday it reached new medium-term high of 4,169.48 and on Friday the local low was at 4,113.86. Recently the index kept advancing from its March 13 local low of 3,909.16. It rallied ahead of the coming quarterly earnings releases, among other factors.
Stocks will likely open 0.4% lower this morning. So the S&P 500 will further extend its short-term consolidation following Thursday’s decline. The index continues to trade along the 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. It is still trading along the 4,150 level. 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 0.4% lower this morning. The market will be waiting for the important earnings releases. Today after the session’s we will get reports from GOOG, MSFT and V, tomorrow from META, and on Thursday from AMZN and INTC, among others. There have been no confirmed negative signals so far and it still looks like a correction within an uptrend.
Here’s the breakdown:
- The S&P 500 extends its short-term consolidation following its last week’s decline.
- 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).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
