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 remains close to 4,300 – will the uptrend continue?
The S&P 500 index gained 0.62% on Thursday, as it got back closer to the 4,300 level again. It trades along its Monday’s medium-term high of 4,299.28. On Monday it was the highest since August of 2022. There is still a lot of uncertainty concerning monetary policy, the coming economic data releases including next week’s CPI and FOMC, some technology stocks’ valuation concerns, but overall, the investors’ sentiment remains bullish.
This morning stocks will likely open 0.1% lower. So the S&P 500 index may see some more short-term uncertainty following its recent rally. Last week it broke above a two-month-long trading range as we can see on the daily chart:
Futures Contract Remains Close to High
Let’s take a look at the hourly chart of the S&P 500 futures contract (the new September series is trading higher than June one). This morning it’s trading along the 4,340 level. The support level is at around 4,300, among others.
Conclusion
The S&P 500 will further extend its consolidation along the 4,300 level. Investors are waiting for the next week’s crucial economic data releases, including Tuesday’s CPI and Wednesday’s FOMC, among others. For now it looks like a relatively flat correction within an uptrend. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 will likely further extend its consolidation; the market is waiting for next week’s key data.
- 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
