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 resumed their uptrend on Friday – will the S&P 500 get closer to 4,200 level?

The S&P 500 index gained 0.83% on Friday as it slightly extended its uptrend after breaking above the April 18 local high. The daily high was at 4,170.06 and it was the highest since early February. The index rallied from its Wednesday’s local low of 4,049.35.

Stocks will likely open 0.1% lower today. So the market may fluctuate following its Thursday’s-Friday’s rally. The S&P 500 got closer to the important 4,200 level as we can see on the daily chart:

Futures Contract Trades Sideways

Let’s take a look at the hourly chart of the S&P 500 futures contract. It’s trading within a relatively narrow price range. The resistance level is at around 4,200 and on the support level is at 4,150, among others.

Conclusion

The S&P 500 index is expected to open virtually flat this morning. There may be a relatively narrow trading range due to a long holiday weekend in Europe. However, the market will be waiting for the important FOMC Rate Decision release on Wednesday and more quarterly earnings releases, including Thursday’s report from AAPL plus Friday’s monthly jobs data release.

Here’s the breakdown:

• The S&P 500 was the highest since early February on Friday; this morning it will likely fluctuate.
• 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