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 continued to trade along the 4,100 level yesterday – will the uptrend resume?
The broad stock market index gained 0.10% on Monday after opening much lower following an overnight global markets’ weakness. Last week on Tuesday the S&P 500 reached new medium-term high of 4,133.13 despite the recent banking crisis, Fed’s interest rates worries. The index was the highest since February 16. It was advancing from the March 13 local low of 3,909.16.
Stocks are expected to open virtually flat this morning. So the S&P 500 will likely extend its short-term consolidation ahead of the important Consumer Price Index release tomorrow. For now it looks like a relatively flat correction of the uptrend. 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 Above 4,100
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading sideways following last week’s rally. The nearest important support level is at 4,080-4,100 and the resistance level remains at 4,150-4,170.
Conclusion
The S&P 500 index will likely open virtually flat this morning. It may further extend a consolidation along the 4,100 level. For now, it looks like a correction within an uptrend, however, we may see more profit-taking action at some point. The markets will be waiting for the important Consumer Price Index release tomorrow.
Here’s the breakdown:
- The S&P 500 index will likely extend its short-term consolidation.
- 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
